Barcelona have confirmed an agreement with Hamburg for the transfer of Alen Halilovic.

The Croatia international heads to the Bundesliga for a fee of €5million, with Barca retaining the option to buy the player back for €10m in the next two years.

Halilovic spent last season on loan at Sporting Gijon and was not present as the Barca squad returned for pre-season training this week.

Hamburg revealed on Thursday that Haliliovic had completed his medical, posting a picture of the 20-year-old in the club's training kit on Twitter.

Halilovic joined Barca from Dinamo Zagreb in 2014, but failed to make a single LaLiga appearance for the Catalan giants.

Last season's stint at Gijon saw Halilovic make 35 league outings, scoring three goals, and he will be keen to kick on in the Bundesliga.