Spain midfielder Xabi Alonso has completed his £30m transfer to big-spending Real Madrid from Liverpool after passing a medical on Wednesday.
The Reds revealed on Tuesday a deal had been struck but added the terms would remain confidential.
Alonso, 27, joined Liverpool from Real Sociedad in August 2004 for £10.5m.
Technical director Jorge Valdano said the capture of Alonso would signal the end of Real Madrid's buying spree which has now seen them spend over £200m.
"With this signing, the chapter is now closed on transfers," said Valdano.
"Before the start of the pre-season, the coach Manuel Pellegrini told us it was necessary to strengthen two positions: the defence and the midfield, and that is what we have done."
Alonso becomes the second Liverpool player to join the Spanish giants after full-back Alvaro Arbeloa's £3.5m switch to the Bernabeu in July.
Real, under the guidance of returning president Florentino Perez, have embarked on an ambitious rebuilding programme this summer.
Cristiano Ronaldo arrived from Manchester United in a world record £80m deal, Brazilian playmaker Kaka was bought from AC Milan for £56m and Real have also spent £30m to sign France striker Karim Benzema from Lyon.
In addition, defender Raul Albiol was signed from Valencia as Real look to build a squad capable of challenging for honours at both home and abroad.
Rivals Barcelona completed a clean sweep of domestic trophies in Spain last season, while Real have failed to progress beyond the last 16 of the Champions League for the past five seasons.
Alonso's transfer to the La Liga club brings to an end Real's long pursuit of the Spanish international.
In July, Real sporting director Miguel Pardeza was quoted as saying "Madrid don't discard an option until it is truly impossible" after reports suggested Liverpool wanted £50m for the midfielder.
It is believed Real returned with an offer of £30m that could rise to £34m, depending on Alonso's success in Spain.
He will join former Liverpool goalkeeper Jerzy Dudek at the Bernabeu, leaving only Steven Gerrard and Jamie Carragher from Liverpool's 18-man squad that won the Champions League in 2005.
Alonso and Dudek were both part of the side that dramatically fought back from 3-0 down against AC Milan to win the trophy in a penalty shoot-out, Alonso scoring Liverpool's third and equalising goal on 59 minutes.
Liverpool manager Rafael Benitez had tried to sell the Spanish international last summer as he looked to fund a move for midfielder Gareth Barry from Aston Villa.
However, Alonso did not want to move and a deal for Barry eventually fell through, with Alonso going on to play a key role as Liverpool finished second in the Premier League.
The Reds revealed on Tuesday a deal had been struck but added the terms would remain confidential.
Alonso, 27, joined Liverpool from Real Sociedad in August 2004 for £10.5m.
Technical director Jorge Valdano said the capture of Alonso would signal the end of Real Madrid's buying spree which has now seen them spend over £200m.
"With this signing, the chapter is now closed on transfers," said Valdano.
"Before the start of the pre-season, the coach Manuel Pellegrini told us it was necessary to strengthen two positions: the defence and the midfield, and that is what we have done."
Alonso becomes the second Liverpool player to join the Spanish giants after full-back Alvaro Arbeloa's £3.5m switch to the Bernabeu in July.
Real, under the guidance of returning president Florentino Perez, have embarked on an ambitious rebuilding programme this summer.
Cristiano Ronaldo arrived from Manchester United in a world record £80m deal, Brazilian playmaker Kaka was bought from AC Milan for £56m and Real have also spent £30m to sign France striker Karim Benzema from Lyon.
In addition, defender Raul Albiol was signed from Valencia as Real look to build a squad capable of challenging for honours at both home and abroad.
Rivals Barcelona completed a clean sweep of domestic trophies in Spain last season, while Real have failed to progress beyond the last 16 of the Champions League for the past five seasons.
Alonso's transfer to the La Liga club brings to an end Real's long pursuit of the Spanish international.
In July, Real sporting director Miguel Pardeza was quoted as saying "Madrid don't discard an option until it is truly impossible" after reports suggested Liverpool wanted £50m for the midfielder.
It is believed Real returned with an offer of £30m that could rise to £34m, depending on Alonso's success in Spain.
He will join former Liverpool goalkeeper Jerzy Dudek at the Bernabeu, leaving only Steven Gerrard and Jamie Carragher from Liverpool's 18-man squad that won the Champions League in 2005.
Alonso and Dudek were both part of the side that dramatically fought back from 3-0 down against AC Milan to win the trophy in a penalty shoot-out, Alonso scoring Liverpool's third and equalising goal on 59 minutes.
Liverpool manager Rafael Benitez had tried to sell the Spanish international last summer as he looked to fund a move for midfielder Gareth Barry from Aston Villa.
However, Alonso did not want to move and a deal for Barry eventually fell through, with Alonso going on to play a key role as Liverpool finished second in the Premier League.
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