The Bernd Schuster era at the Bernabeu has begun with Real Madrid splashing out on Porto defender Pepe.
The Brazilian-born centre-back, whose full name is Kleper Laveran Lima Ferreira, has become Los Merengues' first summer signing, a day after Schuster was installed in the White House as head coach.
"Real Madrid and Porto have reached an agreement for the transfer of defender Kleper Laveran Lima Ferreira, 'Pepe'," said a statement on Real's official website.
"The player has signed a five-year contract and will join up with Real's squad immediately."
In Portugal it is being reported that Real laid out €28 million (£19 million) to secure Pepe's signature, who will not fill a non-EU place as he was granted European citizenship last year.
The 24-year-old helped Porto clinch the Portuguese title last season, and his arrival looks like signalling the end of Madrid's long-running interest in Roma defender Cristian Chivu.
The Romanian had been a target for the last month or so, but his wage demands and unwillingness to leave Italy saw that deal collapse earlier this week.
Pepe, who stands at 1.87m, began his career at CS Maritimo where he made 63 appearances in three years before moving to Porto.During his three seasons with the Dragões, Pepe helped the club win the Portuguese championship and cup in 2005-06 and 2006-07, as well as lifting the Portuguese Super Cup last season and the FIFA Intercontinental Cp in 2004.In a separate Real Madrid development, Julio Baptista has said he expects to start next season at the Bernabeu after spending the last campaign on loan to Arsenal in th English Premiership.
He is currently in Venezuela playing for Brazil in the Copa America, but believes his future is still a Real Madrid.
"When the Copa finishes I will return to Real Madrid, the club with whom I have a contract and with whom I will undertake pre-season," he said.
"The most important thing is that I return to the club who signed me.
"What's more, Spain is a place I like living and I will give everything to be able to play there again."
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