The highly-rated 17-year-old had previously announced via Instagram that he would be moving to the Spanish champions and he will initially link up with the club's B team.
A host of European giants including Manchester United, Chelsea, Real Madrid and Bayern Munich were all reportedly monitoring the youngster's progress.
Halilovic has been dubbed the 'Balkan Messi' and Martino says that talks have been ongoing for a number of years.
"These negotiations, or the bid to sign this player, started in 2010," he said.
"He's coming here to play for the B team.
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