Real Madrid will have to pay Paris Saint Germain 4.5 million euros ($5.9 million) to secure the services of Carlo Ancelotti, an amount corresponding to the final year remaining on the Italian manager's contract with the French club, L'Equipe reported Saturday.

That compensation was a key point in the agreement reached last week between the two clubs' presidents, the daily reported, without indicating its sources.

L'Equipe said that, with French manager Laurent Blanc apparently heading to PSG and expected to sign by Wednesday at the latest, the road has been cleared for Ancelotti's move to the Bernabeu.

It noted, however, that the Italian is not expected to sign with the Madrid club until July 3 due to tax reasons.

Ancelotti, who is to replace Jose Mourinho as manager of Real Madrid, will make between 7-8 million euros ($9.2-10.5 million) a year with the Spanish powerhouse, L'Equipe said.