Former Spain striker Raul has joined German side Schalke after ending his 18-year career with Real Madrid.
The 33-year-old, who announced his departure from the Spanish giants on Monday, had hinted he could make a move to a Premier League side in England.
But on Wednesday he signed a two-year deal with Schalke, who finished second in the Bundesliga last season.
"We have signed an exceptional footballer and world-class goalscorer," said Schalke coach Felix Magath.
"His signing is a decisive step in our efforts to strengthen and restructure the squad."
Schalke had a gap to fill in its attack after Kevin Kuranyi left for Dynamo Moscow at the end of last season.
Raul scored 323 goals in 741 games for Real, and 44 goals in 102 Spain games.
That scoring ratio helped him become a legend at the Bernabeu club, which he joined in 1992 - making his first-team debut against Real Zaragoza in October 1994 at the age of 17.
And his record meant the likes of Tottenham, Newcastle, Liverpool and Manchester United were mentioned as possible destinations for the veteran forward.
Raul helped Real seal three Champions League triumphs and six Spanish league titles in his time at the club.
When announcing his exit on Monday, he said: "This is a very tough and difficult day.
"Football has been my life and Real Madrid my home. Together we have lived unique moments.
"I feel like a footballer still and I will keep on playing but I will always be loyal to Real Madrid. I have tried to give everything in my time here.
"A new period starts today. I have been happy at Real Madrid and I will always be willing to help the club in whatever it needs."
Real president Florentino Perez also paid tribute to the departing idol and stated: "We will never forget Raul.
"There are many men who form part of the legend of Real Madrid but few that are chosen to embody the club - Raul is one of those."
Midfielder Guti, 33, who spent a total of 25 years with Real having come through their youth system, announced he was joining Turkish club Beskitas on Sunday.