The 23-year-old Spanish professional footballer, who plays as an attacking midfielder for Italy’s Serie A club AC Milan, is returning to Real Madrid.
Diaz spent three seasons on loan at AC Milan, helping them win a Serie A title in 2022 and reach the Champions League semifinals this season.
He joined Madrid from Manchester City in 2019, but barely played in his single season in Spain’s capital.
He will rejoin a squad that won Spain’s Copa del Rey last season but needs to replace the loss of Karim Benzema.
Diaz is the third arrival at Real Madrid this month, following a deal reached with Borussia Dortmund for midfielder Jude Bellingham and the decision to buy back left back Fran Garcia from Rayo Vallecano.
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Diaz spent three seasons on loan at AC Milan, helping them win a Serie A title in 2022 and reach the Champions League semifinals this season.
