The Spanish team acquired the 19-year-old midfielder for pound & around;15 M,
“This really could be the most significant day in my life,” Diaz told reporters on Monday.
“I have joined the club which I have dreamed of playing since I had been a child,” he further added.
I didn’t want to go anywhere else.”
Diaz, who joined Manchester City from Malaga in 2013 aged 14, has now signed up a six-and-a-half-year contract that runs on the summer of 2025.
He only made 15 firstteam appearances throughout his time at City and played only four times per season.
Madrid president Perez said:”This player features a special talent. He has of success at this bar magical caliber and dreams. He picked it and that energy will help.”
Diaz will be the most recent young player to leave Manchester City in recent times, together using departures for example winger Jadon Sancho, who has starred for England since moving to German side Borussia Dortmund for £8m in 2017.