The 22-year-old enjoyed his most productive season last term, scoring eight goals for Madrid, including six in La Liga. His tally featured a hat-trick against Real Betis in January.

Garcia has signed a contract with Fulham until 2031, with the club holding an option to extend the deal by a further year.

Spanish media reported the transfer fee to be around 40 million euros ($46 million), while Madrid are understood to have retained a 30% sell-on clause.

Fulham appointed Arbeloa as head coach earlier this summer. The Spaniard previously worked within Madrid's youth set-up before taking over the top job after Xabi Alonso was sacked in January.

Garcia was not the only young Spaniard to make the move from Madrid to west London. Attacking midfielder Cesar Palacios, 21, also joined Fulham after breaking into the Real first team under Arbeloa in recent months.

Madrid, who hired Portuguese veteran Jose Mourinho as coach to replace Arbeloa, are overhauling their squad after going two consecutive seasons without a major trophy.