It represents another statement of intent from Los Blancos, who appear keen to stay in the hunt for top footballing talent whenever it becomes available, even if this is to the detriment of players from its own academy set up.
There's little doubting Danilo's quality. Ever since he first appeared on the scene for Santos, it was obvious the Brazilian was destined for great things, and he will soon establish himself as first choice in the right-back slot for the national team.
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In a sign of how highly Real rate him, they've tied him to a six-year contract. He will certainly add something to their attack with his rampaging bursts forward reminiscent of a young Dani Alves, the player he will replace for the Selecao.
Indeed, he could also have replaced him at club level if Barcelona weren't bound by a transfer embargo. Neymar had often spoken of how he would love to see his compatriot in Blaugrana, but that is no longer an option.
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You wonder how many more talents Barca will miss out on before they can hit the sales again in the New Year.It's sure to be a long, hard summer for the Catalans, especially when they can only sit back and watch their fiercest rivals hoover up the best players that European or world football have to offer.
What now for Carvajal?
One player who may not be rejoicing at the news is Dani Carvajal. Danilo's arrival is likely to mean that Carvajal has to accept a bit-part role at the club or move on to pastures new to find regular employment again.
Can you imagine if he pitched up at Barca in eight months time?
All joking aside, Carvajal has been far from a disappointment in the role. He has been found wanting on occasion throughout the season, but which Real player hasn't at times. After their epic 22-match winning streak things have unraveled unbelievably at the Santiago Bernabeu. To the extent that Carlo Ancelotti's position has even been talked about in dispatches.
That's the sometimes toxic environment that Danilo will be walking into and just how it is at one of the best football clubs in the world. After delighting Porto fans with his heady mix of energy, power, pace and a high level of crossing ability, Danilo will have to get used to the politics.
And the boos and the white hankies, if he's not doing the business week in and week out at the Santiago Bernabeu. The fact that he'll be replacing one of Madrid's own is unlikely to help his cause either, unless he can quickly reproduce the form he's shown in Portugal where he has been one of the stand out performers in the league.
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