The Basque midfielder joins Madrid from Liverpool for around £30million and was unveiled after passing his medical earlier on Wednesday.
The transfer sees Alonso return to Spain after five years away from his homeland. And, while he enjoyed his time on Merseyside, the former Real Sociedad player admitted he decided before the end of the season the time was right to move on.
"I am very grateful to Liverpool fans, they were very warm during my five years," he continued. "It will be really difficult to match their appreciation.
"I really enjoyed those five years.
"But a few months ago I took that decision as I thought it was the right moment to find a fresh challenge, to look for a new club. That's when Real Madrid came along. Luckily a deal has been done and I'm very happy."
And after leaving the Barclays Premier League club, Alonso was quick to publicly thanks his team-mates and in particular manager Rafael Benitez.
"I respect him and thank him for the opportunity he gave me.
"The goodbyes were quite brief, everything happened very quickly and I didn't have time to say goodbye properly.
"I want to return to say goodbye to my team-mates and Rafa.
"As everything was very quick I hardly had time so as soon as I can I will say goodbye as I should have done."
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