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Real Madrid have confirmed they have signed Cristiano Ronaldo to a new contract with an option for 2018, ending his long-term contract with the club.

The announcement comes on the heels of Real Madrid president Florentino Perez announcing on Monday the signing of Brazilian international Ronaldo, who had a one-year contract at the Bernabeu.

The move was announced on the same day Real Madrid also announced they had reached an agreement with former Manchester United midfielder Paul Pogba for the 2018-19 campaign.

The Real Madrid deal, which will see Ronaldo make his first appearance in a Madrid shirt in a Champions League group match, is worth €110 million ($123 million) and will run through 2021.

The 28-year-old scored 25 goals in 30 appearances for the Portuguese giants in his first season in charge of the club, and his move to Real Madrid has been praised by former club teammate Cristiano.

The former Manchester City star tweeted: “Real Madrid have signed my old club mate Cristiano to a contract extension.

He’s a legend of the game, one of the best I’ve ever seen.””

He’s one of my favourite players and I’m happy he’s staying,” Ronaldo added.”

I’m happy for the team and I think the fans will be happy too.

I’m really happy to be part of this team.”

The news comes as Real Madrid’s Champions League campaign continues to be marred by a number of injuries.

The club has been without top scorer Lionel Messi for four weeks, and goalkeeper David de Gea has been forced to miss a further four games with a knee injury.

The return of the injured players, who were unable to travel to Turkey to face Borussia Dortmund, also led to the departure of Real’s first-choice centre-back duo, Javier Mascherano and Sergio Ramos, in the process.

Ronaldo and Pique, who will be reunited in the Bernabéu next month, have also been linked with a move to Chinese Super League side Shanghai Shenhua.