Real Madrid have announced the signing of Malaga winger Isco.

Isco, 21, has long been linked with Madrid and the arrival of new coach Carlo Ancelotti, who was unveiled as the successor to Jose Mourinho yesterday, has accelerated the transfer.

"Real Madrid incorporates a new project with one of the best Spanish football players," the club said in a statement.

"Francisco Roman Alarcon - Isco - plays at the Bernabeu for the next five seasons.

"Imagination and speed are some of the qualities that define this midfielder... a recent champion with Spain at Euro Under-21 and at age 21 already capped by the senior team," Madrid's statement added.

"[He is] a player with enviable technical quality, chutzpah and imagination."