Garcia, 22, broke into the Real Madrid first team under Xabi Alonso with some fine displays in the 2025 Club World Cup.
The striker struggled for first team football after that, however, starting just nine of his 30 LaLiga games, scoring six goals and providing one assist.
Fulham have now confirmed Garcia’s signing on a deal until the summer of 2031 with an option to extend for a further 12 moths, reuniting with former boss Arbeloa.
The Premier League club state the signing was for an ‘undisclosed fee’, but it’s been reported Fulham have paid £34 million plus £1.7m in add-ons.
Speaking to FFCtv after signing, Garcia said: “I’m very grateful, very happy to be here.
“I have to thank the board and Arbeloa for the trust they’ve put in me, and I’m very, very excited to start.”