The 23-year-old’s previous agreement expired on June 30, although the new deal was ironed out some months ago, and the club’s official website says then new arrangement will see the player registered for first-team duty only.
Hence, he will no longer be available for the club’s second string side Castilla.
Nacho joined Los Blancos in 2001 and was promoted to Jose Mourinho’s squad last season, making nine La Liga appearances, but still featured for Castilla when not required.
Under new Madrid boss Carlo Ancelotti, he will take Ricardo Carvalho’s place in central defence following the Portuguese’s departure for Monaco this summer.
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