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Real Madrid signed a two-year contract with Tiago.
The 30-year-old footballer, who has represented clubs such as London's Chelsea and Lyon during his career, was a free agent as he terminated his contract with Turin's Juventus a few days ago.
Tiago won't have to move anywhere: for the last year and a half, he has been loaned to Atletico's team, where he played 31 matches and scored four goals in the Spanish championship last season.
The Portuguese will join his teammates this month.
