Bayern break the German transfer record
If the reports are close to the mark, Martinez would become the most expensive signing in German football history.
There were Premier League clubs in for Martinez; both Manchester City and United are believed to have had bids rejected this summer.
Manchester City are set to miss out on their second big-name target when Athletic Bilbao midfielder Javi Martinez signs for Bayern Munich.
The 23-year-old Spaniard is set to join the Bundesliga side for €40million, which would make him the most expensive player in the league history.
Defensive midfielder Martinez impressed for Bilbao against United in Europe last season and City had hoped to bring him to the Etihad Stadium.