Known as 'Yusi', the 19 year-old moves to Alaves for €3m, with Real also retaining 50 per cent of any sale. They also hold a buy-back option.
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Yusi has penned a deal to 2029 with the LaLiga club.
The youngster posted a farewell to Real Madrid, stating: "I say goodbye to the club that was my home."
He thanked the management, coaching staff, teammates, and all the club's employees, emphasising that defending the Real Madrid crest was a "privilege" that he will cherish "for the rest of his life."