26 year old Rodriguez, joins the Bavarians on a two-year loan deal.
Madrid were asking for around £70million for Rodriguez which put off potential buyers but the 25-year-old will now link up with Carlo Ancelotti, who worked with him at Madrid.
The statement by Bayern said:
"FC Bayern Munich and Real Madrid have agreed on the change of Colombian national player James RodrÃguez to the German championship on Tuesday.
"The two clubs agreed on a two-year loan transaction until June 30, 2019 with the following purchase option for FC Bayern Munich.
"James RodrÃguez will sign his contract in Munich after successfully completing the compulsory medical check."
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