Endrick will join the European and LaLiga champions in July 2024, due to world soccer governing body FIFA's rules prohibiting underage players from playing abroad.
Real Madrid have reportedly trumped several top clubs, including Paris St Germain, Chelsea, Barcelona, Liverpool, Manchester City and Manchester United, who were chasing the young prospect.
Palmeiras and Real did not provide any details of the deal but Brazilian media group Globo said the transfer would be worth 70 million euros ($74.88 million), the second biggest in the history of the Brazilian championship only behind the reported 88 million euros Barcelona paid for Neymar in 2013.
"I want to thank Palmeiras for offering me everything necessary to become what I am today, for helping me to accomplish several of my dreams and for respecting my desire and that of my family to make another dream come true," Endrick said in an official statement published on the Palmeiras website.
"Until I join Real Madrid, I will continue to dedicate myself as I always have in order to offer Palmeiras even more on the field: more goals, more victories, more titles and even more joy for our fans."
Real said Endrick will visit the club's facilities in Spain next week. His compatriots Vinicius Junior and Rodrygo were also signed from Brazil when they were under 18.
A stand-out talent from a young age, Endrick scored 170 goals in 176 matches for Palmeiras' academy.
Endrick, who has been at the club since 2017, was Palmeiras' youngest-ever debutant at 16 years two months and 15 days before becoming their youngest-ever scorer less than a month later.
He is the only player to ever be crowned a champion in all the club's age groups - Under-11, Under-13, Under-15, Under-17, Under-20 and at the professional level.
First contract in 2022
Endrick signed his first professional contract in July 2022, with a release clause of 60 million euros - exactly the amount Palmeiras will receive for the sale.
A champion and highlight of the Palmeiras youth team in recent years, Endrick has attracted interest from various European heavyweights. The striker was used in the final stretch of the Brazilian Championship by coach Abel Ferreira and scored three goals in the title campaign.
Endrick will play in January in the South American U-20 Championship for the Brazilian national team in Chile, and then must rejoin Palmeiras for the 2023 season.
