Alonso, 32, is expected to have a medical on Thursday with the German club, who anticipate reaching an agreement with the European champions over a transfer "in the next two days."
The former Real Sociedad and Liverpool midfielder is set to become Bayern's second major signing of the week, following the arrival of defender Medhi Benatia from Roma.
During Benatia's official presentation as a Bayern player on Thursday, his new club confirmed widespread reports of the proposed signing of the highly decorated Alonso, who retired from international football on Wednesday.
"We are in talks with Xabi Alonso and Real," finance executive Jan-Christian Dreesen told the news conference in Munich. "We've reached a principal agreement with the player, and want to reach an agreement with the club in the next two days.
"He will travel to Munich to undergo his medical today."
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