RB Leipzig have made Xavi Simons' loan from Paris Saint-Germain permanent, breaking the club's transfer record to sign the attacking midfielder until 2027.

The Red Bull-owned club announced the transfer on Thursday, making it Leipzig's first big signing since Jurgen Klopp took over as its parent company's Global Head of Soccer in early January.

German media reported Leipzig paid a club record of around 50 million euros ($52 million) for the 21-year-old Netherlands international.

Simons was reportedly in the sights of several European giants including Bayern Munich and Manchester United, making the deal a coup for Leipzig.

"I feel very comfortable in Leipzig and have felt honoured by the great appreciation I receive at the club," Simons said in a statement.

Leipzig signed the Barcelona youth product on loan in the summer of 2023 and extended the loan by a year the following summer.

Simons has 15 goals and 19 assists in 60 games in all competitions for Leipzig.

At international level, Simons has played 24 times for the Netherlands, scoring three goals including the opener against England in the Euro 2024 semi-final.

Leipzig's sports CEO Marcel Schaefer said the club had "worked for a long time" on the deal.

"Xavi has developed extremely well with us and underlined that RB Leipzig is the right club for young, exceptional players."

Leipzig were eliminated at the group stage of the Champions League and sit fifth in the Bundesliga, 16 points behind leaders Bayern Munich.

The winners of two of the past three German Cups, Leipzig host Wolfsburg in the quarter finals of the competition in February.