Manchester City have signed centre-back Ruben Dias from Benfica in a transfer worth an initial £62 million ($112m AUD) with Nicolas Otamendi heading the opposite way in a separate deal.
Portugal international Dias, 23, has been a regular for Primeira Liga side Benfica since emerging through the academy ahead of the 2017-18 campaign.
Dias has been linked with a number of big-name clubs around Europe, including Manchester United, but rivals City have now reached an agreement with Benfica.
The Portuguese side confirmed the news on their official website on Sunday, shortly before announcing a €15m ($24.7m AUD) deal is in place for Otamendi, who must now undergo a medical.
City will pay an additional €3.6m (£2.1m) in add-ons for Dias should he trigger various performance-related clauses.
Dias captained Benfica in Saturday's victory over Moreirense and hugged his team-mates and sporting director Rui Costa as he left the field at full-time.
"It was a special moment [with Costa] and I think everyone already knows why," Dias said after the game. "Obviously, people leave their mark on you, and the club also.
"Without a doubt, it was very special for me. I am very happy. It was very important to consecrate this game with a goal, it was very special for me."
Dias' arrival ends City manager Pep Guardiola's search for a right-sided centre-back, 16 months after long-serving Vincent Kompany departed the Etihad Stadium for Anderlecht.
Otamendi – who played for Benfica's Portuguese rivals Porto between 2010 and 2014 – spent five years with City and started 31 games in all competitions last term.
The 32-year-old won two Premier League titles, four EFL Cup trophies, two Community Shields and the FA Cup during his time in Manchester, having arrived from Valencia in 2015.