The 24-year-old, who has won the Bundesliga in each of the last two seasons, had been one of Manchester United's principal transfer targets this summer.
However, United were unable to agree terms with both the player and Bayern over a deal.
And that allowed Los Blancos to swoop for the midfielder, who had just one year left on his contract at the Allianz Arena, and who will be presented as a Real Madrid player later today at the Santiago Bernabeu.
"We thank Toni Kroos for his time in Munich," said Karl-Heinz Rummenigge, Bayern's chief executive.
"We have achieved here with him great success. We wish him and his family all the best in Madrid and Real."
Kroos, who has 51 international caps to his name, leaves Bayern after an eight year association with Germany's biggest club, during which time he made 185 appearances for the club.
'The world needs more Canada. NATO needs more Canada. We need you. We need you' Text of U.S. President Barack Obama's speech to the Canadian Parliament, June 29, 2016, as released by the White House:
Algerian club Entente Setif have been kicked out of the African Champions League after fan violence caused their opening game of the group phase to be abandoned last weekend.
Eddie Murphy, an American comedian, actor, writer, singer, and producer is taken by Box-office to make him the 5th-highest grossing actor in the U.S. Eddie Murphy arrives at "Movies Rock: A Celebration of Music in Film," at the Kodak Theater in Los Angeles, Sunday, Dec. 2, 2007. (AP Photo/Chris Pizzello) Eddie Murphy He was a regular cast member on “Saturday Night Live’’ and worked as a stand-up comedian. Murphy was ranked #10 on Comedy Central’s list of the 100 Greatest Stand-ups of All Time. The Hollywood actor Eddie Murphy is set to star in his first film after a five-year break. The movie was directed by Bruce Beresford and also features Britt Robertson.
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