Jaap Stam

The Holland international, who becomes the world's most expensive defender, agreed a seven-year contract with the Old Trafford outfit. But Stam, 25, will not officially become a United player until July 1. ``It's a great feeling,'' he said. ``As a little kid I adored Manchester United and I like the club very much.''

United boss Alex Ferguson said: ``It's a major signing for us and he's a fantastic player. We're really delighted to get him.''

Stam agreed to waive most of his 15% cut of the transfer fee to facilitate the deal and delighted United chairman Martin Edwards claimed it was one of the easiest negotiations he had conducted with a player.

``We are delighted he has committed himself to Manchester United and it was one of the easiest negotiations I've ever been involved in,'' said Edwards.

PSV Eindhoven spokesman Pedro Salazar-Hewitt said: "Jaap Stam is one of the most complete players in the world.

"He's good in the air, he's good with the ball at his feet and he can impose his big personality on the whole game.

"He has wonderful ideas as a player, and Manchester United will have a lot of good days with him and a lot of pleasure."

PSV had turned down two previous offers from the champions for Stam, who they had originally valued at £15million.

PSV were reluctant to sell Stam, who was under contract with them until 2003, and were determined to receive as high a price as possible for him.

But in the end, they have been forced to accept £5 million less than they originally wanted.

United look likely to finish the season empty-handed and manager Alex Ferguson had stated his intention to start strengthening the team for next season.

Ferguson sees Stam as key to his plans for the new campaign, but his arrival is sure to cast question marks over some of the centre-halves already at Old Trafford.