Madrid say the 24-year-old Welsh winger will sign a six-year contract, pending the completion of a medical, and it is believed he will cost them 100m euros (£85.3m).

He will be presented as a Real player at noon UK time on Monday, in front of 80,000 fans at the Club's Bernabeu Stadium.

Bale has released a statement in which he said: "I have had six very happy years at Tottenham but it's the right time to say goodbye.

"We've had some special times together over the years and I've loved every minute of it.

"I would like to thank everyone at the Club; the Chairman, Board, staff, coaches and players and, most of all, the fantastic fans, who I hope will understand this amazing career opportunity.

Benzema, Mesut Ozil and Angel Di Maria will all be allowed to leave to fund the world record signing of Tottenham Hotspur winger Bale and the £42m transfer of Liverpool forward Suarez, the newspaper claims, and Arsenal maintain an interest in each one of the triumvirate. But Benzema, a striker, is Arsene Wenger’s most wanted, although the player is said to be less keen on leaving the Santiago Bernabeu.

Ancelotti, whose side are in Miami ahead of Wednesday night's clash with Chelsea in the final of the Guinness International Champions Cup, refused to talk about Real's attempts to sign Bale in a world-record fee from Tottenham.

Ancelotti's decision not to discuss the issue comes after he irked Spurs coach Andre Villas-Boas by declaring in a press conference last week that his side were "negotiating and trying to find a solution to the situation" with regards to the Wales international.

"I won't speak about Bale, because I have already angered him (Villas-Boas) and I don't want to anger another coach," the Real boss said.

"I didn't say anything in particular and I prefer not to talk about this."

Tottenham director Sir Keith Mills has acknowledged the club would find it "very difficult" to keep Bale if he wants to move to Spain, even though he signed a new four-year contract only last summer.

Villas-Boas has said the 24-year-old is not for sale, but Spurs recognise any attempts to keep Bale against his will would be futile with Real attempting to push through a deal in excess of £80million.

Mills told the Evening Standard: "We very much want Bale to stay.

"If a player is desperate to leave, it's very difficult to force him to stay.

"We've seen it in other clubs. Even if he has a contract, you can't force somebody to play for you."

The Bale saga has dominated the summer headlines, and although the Spurs boss insists no move is imminent, he was again forced to answer questions about the Welshman's future after their 5-2 friendly defeat by Monaco.

Bale was not involved in that match because of injury but Real are keen to wrap up a possible world-record deal for the 24-year-old before the start of the season and Ancelotti revealed talks were underway earlier in the week.

"These rumours of an imminent transfer are not true. The only thing we have communicated with Real Madrid is that he is our player and he is not for sale.

"Gareth is a guy I really like. We are talking with Real Madrid because there is respect between the two clubs following the transfer last season of Luka Modric.

"We are building a great team for next season. We envisage the future with Gareth. But we know that in football anything is possible."

When asked if he felt Ancelotti was in the wrong, Villas-Boas said: "I think so, in my opinion.

"Carlo is a person I appreciate a lot and we have great respect for each other, but bearing in mind this situation they have decided to make it public.

"Normally in situations like this it is scrutinised by the Football Association with lots of care and attention. We have seen lots of people speak about a player that is not theirs and we are due some respect."

Recently installed City boss Manuel Pellegrini worked with the Portuguese player during his time in charge of Real, and is looking to bring in more new faces to his squad.

Real supremo Florentino Perez claimed Pepe was not for sale in July, and Pellegrini would not be drawn when asked about the 30-year-old on City's recent pre-season visit to Hong Kong.

Former City captain Kolo Toure left the 2012 Premier League champions for Liverpool when his contract expired this summer, and with England international Joleon Lescott entering the final year of his deal at City, another defender could be on Pellegrini's wish-list.

But speaking after Real's pre-season friendly with Everton in Los Angeles, Pepe was guarded when asked about a possible move away from the Bernabeu.

"I'm a professional. They left a lot of things at the end of last season but I have a contract to fulfil," said Pepe, who played in both Real Madrid v Man City matches in last season's Champions League.

"I'm talking to the president of Madrid and my representatives to see what will happen.

"I have a contract, I love the club and I have great affection for the people."