MADRID, SPAIN - SEPTEMBER 24: Kaka (R) of Real Madrid is tackled by Michu of Rayo Vallecano during the La Liga match between Real Madrid and Rayo Vallecano at Estadio Santiago Bernabeu on September 24, 2011 in Madrid, Spain. (Photo by Denis Doyle/Getty Images)
The 26-year-old, who scored 15 goals in La Liga last season, came through his medical on Thursday and has put pen to paper on a three-year deal subject to international clearance.
New manager Michael Laudrup's believes capturing a player who had attracted the attentions of Manchester United, Liverpool, Sevilla and Valencia for such a low fee represents great business for Swansea.
He said: "It's a fantastic signing. We are talking about a player who scored 15 goals in the Spanish league last year for a small club who were saved by the bell in the last minute of the last game to avoid relegation.
"He was a big difference for them with his goals. We lost Gylfi Sigurdsson, who played in that position for half a season, so to sign a player like Michu is fantastic for us when you look at the price and quality of the player. It is a bargain."
Laudrup is quite right - what a signing this is for Swansea. Quite how they managed to snap Michu up for such a small amount is beyond me but it's a fantastic bit of business. He should enter the Yahoo game around the 6.00 mark and is a player to keep an eye on.