A statement released on Friday afternoon read: "We are pleased to announce the signing of Yugoslav international Goran Bunjevcevic, after agreements were reached with Red Star Belgrade and the player.
"The 27-year-old, who can play in defence or midfield, will begin a five-year contract once certain formalities are concluded."
The statement also quotes manager Glenn Hoddle as follows: "I've seen him play many times. He's a very good passer of the ball who can play sweeper or central midfield. He's captain of Red Star with immense experience.
"For the way I want to play and envisage the team playing, he is someone who is very important.
"I see him playing alongside Sol Campbell. They would give us tremendous balance at the back."
The club has confirmed the signing of Yugoslav international Goran Bunjevcevic.