Paris Saint-Germain has made its first significant summer transfer to the French top-flight, signing Real Madrid midfielder Karim Benzema from the Spanish giants.

The move is expected to be worth around €250 million ($347 million), making it one of the biggest transfers in European football history.

Benzema, who turns 34 next month, joins PSG on a five-year contract with a buy-out clause that could reach €600 million ($825 million).

He was initially linked to Manchester United but ultimately chose PSG after talks with the Old Trafford club fell through.

Benzema will arrive at Parc des Princes on Tuesday and will become the club's new captain after Neymar leaves for Barcelona.

PSG manager Laurent Blanc said: "I'm very happy to have signed such a world-class player. He is one of the best players in the world and I believe he will make a huge contribution to our team."

Benzema's arrival will give PSG a more balanced attack, as they have struggled to find a striker since Neymar left last summer.

Blanc added: "We have a lot of talented players already in our squad, so we need to focus on building a strong defense and midfield.

"Karim Benzema is a great addition and will help us achieve our goals this season."

PSG also announced the signing of defender Raphael Varane from Lyon for €100 million ($131 million). Varane, who is 29 years old, is known for his defensive skills and aerial ability.

Blanc said: "Raphael Varane is another world-class player and he will provide us with a solid presence at the back. We are excited about bringing him to Paris."

Both transfers are expected to strengthen PSG's title defense, which they are aiming to win for the fourth time in six seasons.