The deal means that Kaka will become the first signing of the new 'Galactico' era under recently elected club president, Florentino Perez.
World Record Transfer Fee
Real Madrid are believed to have paid a world record transfer fee to bring Kaka to the Bernabeu from Milan.
Although no official figure has been released from either party involved in the deal, the common belief among the media is that Real stumped up around £60 million to secure the move - beating the previous record by nearly £14 million.
All in all, it is the third time Real Madrid have broken the world record transfer fee to sign a player. Back in 2000, Madrid paid rivals Barcelona £38.7 million to sign Luis Figo in a deal that rocked the footballing world.
A year later they broke their own record when signing Frenchman Zinedine Zidane from Juventus for a staggering £46 million. That record managed to last for eight years before the Kaka deal blew it out the water as the largest fee paid for a footballer.
Kaka snubs Chelsea and Manchester City
As Kaka joined Real Madrid, two English Premier League sides were left contemplating 'the one that got away' as they both failed with attempts to sign the player.
Firstly, in January, Manchester City tabled an unprecedented £100 million bid for the Brazilian star as the clubs wealthy owners flashed the cash in an attempt to turn their mid table team into title challengers.
Although AC Milan accepted the irresistable offer, Kaka himself decided to rebuff City's approach saying he was currently very happy in Milan.
Later, following Real Madrid's world record offer, Chelsea were reported to have attempted to hijack the bid by offering around £17 million more than what Madrid had tabled.
Chelsea never confirmed the bid, but AC Milan claim that Kaka told Chelsea he wasn't keen on a move to England as Spain was his preferred destination. Following that response, Chelsea apparently withdrew their bid.
Kaka Starts New Galacticos Era
Kaka has become the first signing of what the media are dubbing 'the new Galacticos era'.
Real Madrid were first nicknamed the Galacticos in 2000 when then club president Florentino Perez started an ambitious, and pretty expensive, crusade to rule European football by signing the best players in the world.
It started with the signing of Luis Figo and was followed up in the next few seasons with the captures of Zinedine Zidane, Ronaldo, David Beckham, Michael Owen and Robinho.
The era brought relative success early on but when trophies started to dry up, Perez was ousted in favour of the more level headed Ramon Calderon.
However, Perez was re-elected recently after supporters blamed Calderon for the clubs lack of success in Europe and failure to match Barcelona's progression. Being touted as the saviour by many fans, Perez has vowed to start a new Galacticos era at Madrid and made Kaka his first signing.
It is thought that more high profile signings will follow with Cristiano Ronaldo, Franck Ribery and David Villa all wanted but only time will tell if any more deals will come to fruition.
