Silva will join the Spanish giants on a free transfer once his contract at Manchester City expires on June 30.
Barcelona and Juventus wanted the 31-year-old, but Jose Mourinho's pull persuaded him to join Real, and he's now officially a Galactico.
"Real Madrid CF and Bernardo Silva have reached an agreement whereby he will be a Real Madrid player for the next two seasons, until June 30, 2028," Los Blancos wrote in an official statement.
Silva becomes the latest player to join Madrid after Ibrahima Konate, Denzel Dumfries and Marc Cucurella, ending his nine-year association with Man City.
A rebuild, carried out by the returning Mourinho, was much-needed this summer after a second successive trophyless campaign, and Silva will hope to spearhead their charge towards silverware.
The midfield maestro is preparing for Portugal's World Cup opener against DR Congo, as Roberto Martinez's men kick off their campaign.