Luiz Gustavo set for Bayern, Demichelis leaves

FC Bayern München have announced the signing of TSG 1899 Hoffenheim defender Luiz Gustavo subject to the Brazilian passing medical tests, with reports in Germany suggesting that a transfer fee of around €15m has been agreed.

The versatile 23-year-old has been Hoffenheim's outstanding performer this season, and a statement on Bayern's official website on Saturday read: "The new year begins with the likely signing of a new player. Luiz Gustavo will join from 1899 Hoffenheim following medical tests which will take place on New Year's Day and Sunday."

The defender is expected to join his new team-mates at their training camp in Qatar this coming week after agreeing the deal which will involve Bayern's teenage midfielder David Alaba joining Hoffenheim on loan until the summer. Alaba has made only two substitute appearances in the Bundesliga this term and agreed to the switch on Sunday, when Hoffenheim confirmed the departure of coach Ralf Rangnick, who was unhappy with the loss of Luiz Gustavo according to media reports.

Originally signed on loan from SC Corinthians Alagoano, Luiz Gustavo joined Hoffenheim on a permanent basis at the start of 2008/09 and leaves the club having made 99 league appearances and scored two goals. Bayern have also confirmed that Argentinian central defender Martín Demichelis has left the club to join his one-time CA River Plate coach Manuel Pellegrini at Spanish Liga side Málaga CF. The 30-year-old made 178 league appearances in a seven-and-a-half-year spell at Bayern, winning four Bundesliga titles and four German Cups as well as helping the club to reach last season's UEFA Champions League final.

Bayern will meet FC Internazionale Milano in the UEFA Champions League round of 16 on 23 February and 15 March, in a repeat of last season's final.