"We've benefited not only from his goals over the past two years", Frankfurt director Fredi Bobic said. The word has spread in Europe about his explosiveness and his goal-scoring instinct.
"But it was clear that there was a limit to what kind of bid we could refuse". For Eintracht Frankfurt this is a good transfer. We wish Luka only the best for his future.
This past season turned out to be the best by far in Jovic's fledgling career. "We are proud to have helped him on his way", he said.
The 21-year-old emerged as one of Europe's hottest young strikers for his role in Frankfurt's impressive season and was believed to be a target for Premier League club Chelsea.
"Real Madrid and Eintracht Frankfurt have agreed the transfer of Luka Jovic, subject to a medical", the club said in a statement.
Benfica, Jovic's former club, will receive around 25 percent of the final fee.
Jovic spent two seasons on loan at Frankfurt from Benfica before the move was made permanent in April.
Frankfurt had loaned Jovic from Benfica for the past two seasons and due to a permanent signing clause in his contract were able to purchase the Serbian worldwide for a fee believed to be around €7 million (£5.96m).
Besides his 17 goals, five of which came in a 7-1 rout of Fortuna Duesseldorf in October, Jovic set up eight more and scored 10 goals in the Europa League - second only to Chelsea striker Olivier Giroud.