The 19-year-old has brought his three-year spell in Germany, where he developed into one of the world's top midfielders, to an end.
Real will pay an initial £88.5 million for Bellingham, with that fee potentially rising to £115 million with add-ons.
In a short statement on their official website, the club said: "Real Madrid CF and Borussia Dortmund have agreed on the transfer of the player Jude Bellingham.
"Tomorrow, Thursday, June 15, at 12:00 noon [Spanish time] at Real Madrid City, the presentation ceremony for Jude Bellingham as a new Real Madrid player will take place.
Bellingham will become the sixth English player to play for Real Madrid, following in the footsteps of Laurie Cunningham, Steve McManaman, Jonathan Woodgate, Michael Owen and David Beckham.
What is Jude Bellingham's Real Madrid contract?
Real Madrid have confirmed that Bellingham has signed a six-year contract at the Bernabeu. The deal will take him until the summer of 2029, when he would be 25 years of age.
Spanish outlet Cadena SAR claim that his release clause has been set at €1 billion, although this is yet to be officially confirmed.
What will Jude Bellingham's wage and salary be?
Fellow Spanish outlet Marca reported in May that Bellingham was expected to earn £12 million per year, and £1 million per month, if his move to the Bernabeu was finalised.
The deal will make the 19-year-old one of the most expensive players in Spanish football - and Real will be hoping that he delivers top performances on the pitch to help them win the Champions League trophy next season as part of one of the strongest midfields of any club.
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