Juventus have signed a 24.5-million-euro deal with Werder Bremen for Brazil attacking midfielder Diego, the Turin Serie A club said in a statement on Tuesday.
The payment will be broken down in three instalments, with the first 14 million payable on July 1, another 5.5 million in 2010 and the final five million on July 1, 2011.
The five-year-deal includes a clause which guarantees the Brazilian an additional 2.5 million euros depending on his achievements with the club over the next five years.
''I'm enthusiastic about Juventus and proud to become part of such a prestigious club which I've dreamed about since I was a child,'' Diego told the Juventus website.
The playmaker said that in Italy he would be able to test himself ''with football of the highest level'' in a ''difficult and competitive league''.
''I think it's the right moment in my career to make this important step and I'm convinced I'll achieve great results with Juventus''.
Juventus CEO Jean Claude Blanc said Diego would be ''fundamental'' in plans to reinforce the team.
Diego, 24, left Porto in 2006 to join Werder in a four-million-euro deal expected to keep him in the German city until 2010.
He has played 81 times for the 2004 Bundesliga champs, scoring 36 times.
The striker-cum-playmaker has collected 28 Brazil caps and two goals since 2003.