Spanish side Levante have taken up an option to sign him from Manchester City for just under ?1million and are set to sell him on for more than double that amount this summer.
The 22-year-old has attracted wide interest from across Europe after scoring 13 goals in 27 La Liga games on loan at Levante this season.
Loan star: Felipe Caicedo is unwanted at Eastlands but impressed at Levante
Lokomotiv made separate bids to sign Caicedo in January and March and are still desperate to land a striker for when the Russian transfer window opens in August, but the former Basle players was visiting friends in Moscow before considering offers.
Lokomotiv are one of several teams keen on Tottenham's Roman Pavlyuchenko and have also been linked with West Ham's Demba Ba, but a deal for Caicedo would be easier to land.
The move marks a major financial hit for City, who paid more than ?5m for Caidedo in 2008.
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Source: Daily Mail
Source: Daily Mail