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Valencia seal Canales deal

Real Madrid have confirmed that Sergio Canales has made his move to Valencia permanent.

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Canales, 21, joined Valencia on a two-year loan deal last season after failing to make an impact at the Bernabeu following his 2010 move from Racing Santander.

The loan included an option that allowed Valencia to make the loan permanent for a reported €12 million fee, although Madrid included an €18 million buy-back clause in the agreement.

A statement on Madrid's official website announced: "Real Madrid CF and Valencia CF have concluded the agreement for the transfer of Sergio Canales. Real Madrid CF reserves a right of repurchase."

Canales is believed to have signed a five-year contract with Los Che.

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