David Alaba has signed a five-year contract with Real Madrid.
It is believed the deal will earn him around £10.5m per year.
Alaba only left Bayern Munich this month, after his contract with the Bundesliga champions expired.
Real Madrid confirmed the signing on Friday evening and said Alaba would be unveiled after Euro 2020.
Alaba had been at Bayern since 2008 but turned down multiple offers to extend his contract, including a €15m-a-year deal, but talks ceased in November.
He enjoyed a prolific 13 years in Bavaria, winning 10 Bundesliga titles, two Champions Leagues and six German Cups.
The Austria international had also been attracting interest from Premier League sides, including Liverpool and Manchester City.