Jonathan Woodgate became the second England player to sign for Real Madrid in the space of a week when he was unveiled by the club at their Santiago Bernabeu stadium in Madrid on Saturday.
The England defender signed a four-year deal with an option for an extra season with Real, who are reported to have paid Newcastle United a 20-million-euro ($24.64 million) transfer fee.
"This is my dream to come to Real Madrid," said the 24-year-old after being handed the number 18 shirt by honorary president Alfredo di Stefano.
Woodgate, who will not make his Real debut for at least a month because of a thigh injury, will team up with England captain David Beckham and striker Michael Owen at the nine-times European champions.
"I've loved this club since I was young," said Woodgate.
"I used to follow this club and I'm joining a very special team. It's my ambition to win a lot of trophies here and hopefully I'll be a success at Real Madrid."
He becomes the 11th Englishman to sign for Real, but only the fifth to join the club in the last 90 years.
Real Madrid president Florentino Perez said the club had signed Woodgate because they believed he had the potential to be a world-class central defender.
"We analysed all the options available to us and without a doubt the choice of Jonathan is the correct one," he said. "He's a magnificent player.
"For many he is the centre-back with the greatest potential in Europe. His future is now at Real Madrid and here he is going to become one of the best central defenders in the world."
Perez also stressed he expected Woodgate, who made the headlines three years ago when he was convicted of affray following an attack on an Asian student in Leeds city centre, to be exemplary in his behaviour.
"Despite the fact that he is only 24, he is mature and serious on the pitch," said Perez. "He knows that he is now at a club where he faces a constant challenge and must provide an example to everyone on and off the pitch.
"He is a great player who will become part of the history of a great club. You have all our good wishes and all our confidence and we expect you to respond with complete dedication to your work."