The Spanish giants' current sponsor BenQ Mobile filed for bankruptcy in January, forcing Real to search for a new partner for what is historically one of the most lucrative deals in world football.

Bwin has a strong presence in the football sponsorship market, with its portfolio including deals with AC Milan, Real's bitter rivals Barcelona, German club Werder Bremen as well as title sponsorship of the Portuguese top flight.

Real Madrid president Ramon Calderon admitted the credentials of the company was an important factor in his decision.

"This company is a leader in its sector and has an enormous potential to grow," Calderon said.

"Furthermore, they meet the philosophy of Real Madrid.

"Bwin has agreements with other football clubs and sporting companies but more importantly, it understands the passion for football and helps that passion extend to football fans across the globe.

"This is a partnership that will help both sides."

Bwin chief executive Manfred Bodner said: "Real Madrid is a true sporting legend and our aim is to work together like a team to conquer our respective aims."