Balboa has signed a four-year contract at the Lisbon club after struggling for first-team opportunities under Madrid coach Bernd Schuster.

The 23-year-old becomes one of Quique Sanchez Flores' first signings since he took over at the Benfica helm last month, and the coach admitted to his delight at capturing a player that he first encountered while in charge of Madrid's youth team.

"I coached him in youth categories and I have very good impression of him," said Sanchez Flores. "He is a modern player, quick, able to cross well and is a hard worker."

"He created a good impression at 18, and now at 23 he will show that he is a good player."

Balboa added: "It was easy reaching an agreement because I wanted to come to Benfica.

"It is important having the confidence of the coach, and Benfica is an important club in Europe and the best in Portugal."