Fulham have completed the signing of César Palacios from Real Madrid, with the Spanish attacking midfielder putting pen to paper on a five-year contract at Craven Cottage that runs until 2031, with the option of a further year. The deal is worth around €10 million, structured so that Fulham take 70 per cent of Palacios' registration rights while Real Madrid keep the remaining 30 per cent, entitling them to a cut of any future sale. Real Madrid confirmed the move in an official statement, thanking the 21-year-old for six years of service in the club's academy system.
The move is driven by Álvaro Arbeloa. The former Real Madrid defender, appointed Fulham head coach this summer, worked with Palacios at Real Madrid Castilla and pushed the club's recruitment department to get the deal done. Palacios is Arbeloa's second signing from his old club in the space of a few days, following the arrival of forward Gonzalo García, with the pair's combined fee reported at around £42.5 million. It is a clear statement of intent from the Fulham board, who have backed their new head coach with the funds to build a squad around players he knows and trusts.
For Real Madrid, it means losing a player who joined their academy at 15 in 2020 and spent six seasons coming through the ranks, including a treble-winning campaign with the Juvenil A side in 2022-23. Palacios made his first-team debut under Arbeloa in a Copa del Rey tie against Albacete this past season and went on to add a Champions League appearance against Benfica, finishing the campaign with seven senior appearances in all competitions. That wasn't enough to force his way into a regular starting role in a crowded Real Madrid squad, and the club have let him leave while keeping a sell-on stake in case he goes on to bigger things.
What he leaves behind is a run of eye-catching form for Real Madrid Castilla in Spain's third tier. Playing as an attacking midfielder, Palacios was one of the division's most productive players this season, reaching double figures for goals while also setting up others — output that marks him out as more of a goal threat than a typical holding or box-to-box midfielder. That end product, combined with his senior experience under Arbeloa, is what persuaded Fulham to move for him ahead of other interested clubs.
At Fulham, Palacios should slot into an attacking midfield role, with his versatility also allowing him to play further forward or out wide if needed. He arrives with the backing of a manager who has already worked closely with him, which should help him settle even though senior Premier League football is a big step up from Spain's Primera Federación. "I am very emotional to be here," Palacios said after signing. "I believe it is the perfect step in my career. The club is showing a lot of trust in me, and I'm going to show it on the pitch."