Spanish La Liga giants Atletico Madrid have agreed on a club-record deal for Joao Felix from Portuguese Super League giants Benfica.
The deal for Joao Felix was announced by Atletico Madrid on Wednesday evening.
Earlier reports had claimed that Atletico Madrid were willing to meet his €120m at Benfica.
The Spaniards have paid more than the release for the Portuguese teen sensation after they agreed on a fee of €126m for him.
The said amount makes him the third most expensive player in the history of world football (excluding bonuses).
Only Neymar (€222m) and Kylian Mbappe (€135m) have gone for more money.
Neymar and Kylian Mbappe both play their club football for French Ligue 1 giants Paris Saint Germain (PSG).
Joao Felix enjoyed a breakthrough season for Benfica in the last campaign as he helped the team reclaim the league title from FC Porto.
He was a subject of a €61m bid from Liverpool last year but Benfica wanted more money for the 19-year-old attacker.
Joao Felix produced his best display in a Benfica shirt when he netted a treble to become the first teenager to achieve that feat in the history of the Europa League.
The treble came during the Europa League quarterfinal clash with Eintracht Frankfurt.