The reigning European champions confirmed the news via their official website, revealing the 23-year-old has agreed a six-year deal with the club, keeping him tied to the Bernabeu until 30 June 2021.
Danilo, who was also wanted by Manchester United, will join up with Real Madrid this summer ahead of the 2015-16 campaign.
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Danilo can become world star
Real Madrid have secured the services of one of the world’s most promising right-backs; the man who has replaced Barcelona’s Dani Alves in the Brazilian national team.
The Spanish giants will be hoping Danilo has the same huge impact at the Bernabeu as Alves has had at Barcelona since arriving at the Camp Nou in 2008.
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Danilo is expected to become a first-team regular with Real Madrid next season, although the former Santos star faces stiff competition from 23-year-old Spaniard Dani Carvajal.
Alvaro Arbeloa is also still at Real Madrid, but Danilo’s arrival is likely to spell the end for the 32-year-old at the Bernabeu.
That Real Madrid have decided to spend such a significant amount of money is surprising considering they already have Carvajal, who Los Blancos re-signed from Bayer Leverkusen in 2013 following a stunning season in the Bundesliga.
The Spain international has performed well under Carlo Ancelotti, who now faces the difficult task of picking between the two right-backs, presuming Florentino Perez allows him to stay at the Bernabeu beyond this summer.
Most top clubs, however, ideally want two top players for every position in order to cope with the demands of such a hectic calendar.
Why didn't Manchester United push harder?
With doubts over Manchester United’s current options at right-back, it is a little surprising that Louis van Gaal did not push harder to sign Danilo.
Rafael has failed to convince Van Gaal; Antonio Valencia struggles defensively at times in that position, while Paddy McNair has looked more comfortable at centre-back, despite Van Gaal claiming that the Northern Ireland international had the potential to become United’s first-choice right-back ‘for the next ten years’.
United are considering a move for Southampton and England right-back Nathaniel Clyne, who would be considerably cheaper than Danilo and, crucially, possesses Premier League experience.
But will the Red Devils regret their decision to allow Real Madrid to sign the promising Danilo? Have your say in the comments below!