Real Madrid confirmed the signing of former Liverpool midfielder Xabi Alonso on Tuesday evening.

Alonso, who had spent five years playing in the Premier League and who won the 2005 Champions League with Liverpool had previously handed in a written transfer request after a breakdown in relations with Liverpool coach Rafael Benitez.

Liverpool's Xabi Alonso fights for a header ball with Galatasaray's Umit Karan (rear) during their Champions League Group C soccer match at Ataturk Olympic Stadium in Istanbul December 5, 2006. [Xinhua/Reuters File Photo]

Real Madrid has finally agreed to pay over 30 million euros for the Spain international after weeks of difficult negotiations with the English club.

The 27-year-old will earn around 4.5 million euros a year and has agreed a five-year deal with the club.

He becomes Real Madrid' s seventh pre-season signing and the second Liverpool paper to join the Real this summer after Alvaro Arbeloa returned to the Santiago Bernabeu Stadium last week.

Real Madrid has now spent around 255 million euros on new players this summer since Florentino Perez returned to the presidency with a walkover win in June after no other candidate stood for election against him him.

It has been a long route to Real Madrid for Xabi Alonso, a player whose father Pitxi Alonso played for Real Sociedad and Madrid' s bitter rivals FC Barcelona.

Liverpool's Xabi Alonso reacts after Benfica's Fabrizio Miccoli (unseen) scored during their Champions League first knockout round second leg soccer match at Anfield in Liverpool, northern England, March 8, 2006. [Xinhua/Reuters File Photo]

Alonso began his career with Real Sociedad before opting to play in the Premier League with Liverpool.

Many think the Basque' s arrival is vital to Real Madrid launching a title challenge in both Europe and Spain this season. Alonso plays in central midfield and combines the ability to win possession with that of hitting long accurate passes.

He also has a powerful shot from distance and his arrival will give his new club added bite and options in midfield. Meanwhile Liverpool has to move fast to fill the gap he leaves in their side.

Reports say the English club is close to signing Italian midfielder Gaetano D' Agostino from Udinese and Standard Liege' s Steven Defour to replace him.

United States' Freddy Adu (R) falls down past Spain's Xabi Alonso as they fight for the ball during their international friendly soccer match at the Sardinero stadium in Santander June 4, 2008.[Xinhua/Reuters File Photo]

(Xinhua News Agency August 5, 2009)