Lucas, 23, left Real 12 months ago to join Espanyol on a season-long deal but has returned to put pen to a paper on a five-year deal with Los Merengues. Espanyol were prepared to make Lucas’ stay permanent but Real have paid the one million euro fee to bring Lucas back to the Santiago Bernabeu.
A statement from Real Madrid read: “Real Madrid CF has exercised their buy-back contract rights over Lucas Vazquez in the existing agreement with RCD Espanyol. The player will remain linked to our club for the next five seasons.”
Lucas, a Real academy product, scored three goals in 33 league appearances for Espanyol in his debut season in La Liga. His return follows the signings of Brazil internationals Casemiro and Danilo from Porto. Real appointed Rafa Benitez as their new coach last month after sacking Carlo Ancelotti following a trophy-less year.
The players are due to report for pre-season training on 13 July.