The PSV star passed a medical at the weekend and has put pen to paper on a five-year deal at Old Trafford.

The deal comes almost exactly a year after United's inital move for Van Nistelrooy collapsed because of his failed medical.

A serious cruciate ligament injury then kept him out of action for nine months, but the Premiership champions are thrilled to have finally got their man.

United's desire to land the gifted Dutchman means they were prepared to pay the record fee - despite the uncertainty still hanging over the transfer system.

Manager Sir Alex Ferguson said: "I am delighted that we have signed Ruud, a player we have admired for some time.

"This deal underlines our determination to improve the squad at United."

Van Nistelrooy, who will join United on 1 July, added on the club's official website: "In spite of what has happened in the past year, my feelings for the club have never diminished.

"It has always been a dream of mine to play for United at Old Trafford.

Ruud thanks PSV

"So this move has been a very easy choice for me to make and I look forward to playing for the club next season.

"I'd like to thank everyone at PSV Eindhoven for being so supportive during my time at the club, particularly in the last year."

PSV spokesman Pedro Salazar-Hewitt agreed United had signed a class striker.

"United will get a big player, he can play in any competition and score goals," he said.