The 21-year-old has penned a five-year deal at Real after joining from Malaga for a reported fee of Ôé¼27 million.
Isco ÔÇô who recently starred for Spain in their Under-21 European Championships win and who has also been capped at senior level – was widely expected to sign for Real after club chairman Florentino Perez revealed the two parties had reached an agreement on Wednesday.
But official confirmation came on Thursday as Real posted a short story on their official website confirming their capture of Isco.
Isco’s move to the Spanish capital is a blow to Manchester City, who were hoping that former Malaga coach Manuel Pellegrini would be able to attract him to England.
Real have won the race though, with Isco ÔÇô who signed for Malaga from Valencia in 2011 ÔÇô deciding to remain in his home country.