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Spanish youth (U-21) national team defender Juanfran has transferred to Pamplona after being released by Madrid.
Osasuna announced on their website that Real will have the option to re-sign him in the next two years if needed for the main Royal club squad.
The 21-year-old right-back defender, who will play in the UEFA Europa League this year with Pamplona, has signed a four-year contract.
Last season, Juanfran spent time on loan at Barcelona's Espanyol, helping them reach the final of the Copa del Rey. However, he watched the final, in which his team beat Zaragoza, from the bench.