Pending the successful completion of a medical, Lopez will become a Milan player.
Here is a scouting report on the 32-year-old, 6'5", 196-pound Spanish international.
Milan's goalkeeping stocks are abject, so making a move for Lopez is logical.
Seasoned veteran Christian Abbiati is clinging onto his professional contract.
"We've conceded some incredible goals this season," Abbiati said, per Milan's official website. "I've been at the club for many years and this is one of the worst seasons I've had."
The difference between Gabriel and Manuel Neuer is the German clears the ball while the Brazilian is a hazard to his own team-mates (Mattia De Sciglio is nodding in agreement).
Michael Agazzi is on track to have a Dimitrios Eleftheropoulos-like impactless tenure at Milan.
Lopez is a substantial upgrade over Agazzi, who is lacking confidence.
The unceremonious way Lopez was ousted from Real provides a chip on the shoulder mentality to which Milan manager Filippo Inzaghi can exploit.
Lopez put his body on the line as he rebuffed Villarreal centre-forward Jonathan Pereira in a one-on-one situation.
Lopez stopped Rayo Vallecano deep-lying forward Alberto Bueno's instep drive with an excellent diving save.
Same situation when Barcelona left-back Jordi Alba was denied by Lopez.
Then-Real Zaragoza (now Valencia) centre-forward Helder Postiga's goal-bound header was swatted away by Lopez.
Agazzi is struggling to justify donning the Milan shirt but bear in mind two years ago Lopez was the backup to Andres Palop at Sevilla.
Lopez's ruinous mistake cost him his starting position at Sevilla and gave Palop, who was in the same position as Abbiati in fighting father time, one last hurrah.
While Lopez has redeemed his reputation, his tendency to make careless decisions could see him sink into an Agazzi-like slump giving Abbiati an extended run.
Sevilla centre-forward Carlos Bacca's shot was deflected into the goal by Lopez.
Lopez fluffed his attempt of stealing the ball from Celta Vigo centre-forward Charles.
Not covering the near-post, Lopez was at fault when Richmond Boakye scored for Elche.
Parrying the ball straight to Atletico Madrid centre-back Diego Godin, Lopez was helpless as the ball was pinged back to then-Atleti (now Monaco) centre-forward Radamel Falcao.
Milan chief executive officer Adriano Galliani only targeted Lopez because he was made available on a free transfer under complicated circumstances, per Roberto Palomar at Marca:
The Diego Lopez saga is finally over.
In a political solution to a footballing issue, the goalkeeper is being shipped off to Milan in a deal that is unsatisfactory on many counts.
Real Madrid know that they are losing a superb goalie and there are mutterings of "what if we're making a mistake?" around the place.
The keeper, meanwhile, is leaving the club he loves with his tail between his legs.
The only winners are Milan, who are getting a top player free of charge.
Real signed a world-class goalkeeper in Keylor Navas who would have competed with Lopez for the No. 1 role.
Key words being "would have" since Iker Casillas is still around.
Lopez's exit increases the chances of Casillas, the fallen one-club legend, mounting a comeback made for fables.
Signing Agazzi and then replacing him with Lopez embodies the transfer carousel Milan have adopted.
The overriding feature of Milan's transfer policy is cheapness.
Lopez is a cost-efficient signing who happens to be a great goalkeeper.
Talk about a big transfer win for Milan.
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