According to Corinthians president Roberto de Andrade, the 23-year-old will be tied to the Madrid-based side until the end of 2017, Xinhua news agency reported.
"It's a done deal. Luciano no longer plays here," Andrade told the Folha de Sao Paulo newspaper on Tuesday.
Luciano is one of the three players set to leave the six-time Brazilian Serie A Champions.
According to Andrade, Luciano's strike partner Andre will be sold to Sporting Lisbon while midfielder Bruno Henrique is bound for Italy's Palermo.
Corinthians are currently third in Brazil's Serie A championship, three points behind leaders Palmeiras.
