Madrid
No financial details were given in Real's statement but media reports said the 23-year-old's new contract contained a 1 billion euro ($1.18 billion) release clause.
Valverde, who was already tied to the club until 2025, joined Real from Penarol in 2016. He is the latest in a line of key Real players to agree extended contracts, with France forward Karim Benzema last week signing a new deal to 2023.
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