England star Owen is heading for Spain after agreeing a big-money move from Liverpool to the Bernabeu.

And England's Head Coach believes it's a fantastic move for the 25-year-old.

He said: "I'm happy for Michael and I think it is good news. For England it doesn't matter who he plays for because if you play for a big club that's fine. But for him individually maybe it's the best thing. I think, and it's my personal opinion, that he needed another challenge.

"He's been at Liverpool for a long time. And I think this move is very very good for him because to play for Real Madrid is a big challenge.

"I think Michael is one of those players who needs a big challenge. He shows that in important games because he so often scores and plays well. He's been at Liverpool all his life and he's 25 now."

Owen will join England Captain David Beckham in Madrid and the two will be able to work on their partnership day in day out.

"Having two England players at Madrid is good," said Eriksson. They know each other very well of course and they can talk to each other a lot.

"I don't know if David speaks Spanish yet but for Michael it will be very good to have David there.

"I have no idea what they are thinking about players and whether they will keep all their strikers. But I can't think they would buy Michael Owen to put him on the bench.

"Michael knows how to beat people and be in the box at the right time and he will have a lot of good players around him. With Figo and Beckham playing the ball will come in to him a lot.

"I think he can become an even better player at Real Madrid."

Eriksson admits he was surprised that Owen opted to leave Anfield, having been at the club all his footballing career. But he believes sometimes it is right to move and look for a new challenge.

"If you are at a club for a long time it's the same routine every day," he said. "You are sitting in the same dressing room and even at the same peg because footballers don't like to change that, it's very important to them. I think it's good to experience something new. If you are eating spaghetti every day then it's good to have some potatoes!"

Owen hopes to make a real impact in Madrid, but his first task will be to play for England against the Ukraine in a friendly in Newcastle on Wednesday.

"He will definitely play," said Eriksson. "I want to pick my best team at the start."