Raul has agreed a two-year deal to sign for German side Schalke 04, after leaving Real Madrid, the club have confirmed.
It has long been known that Raul would leave Real Madrid after an 18-year association with the Spanish side and Schalke were tipped as favourites after he was linked with a move to England.
However, Schalke have landed the veteran striker and coach Felix Magath said he would thrive at the club.
''It's great news for FC Schalke 04, I am pleased that we have succeeded in such an exceptional footballer and world-class striker switching to the Bundesliga for Schalke 04,'' Magath told the club website. ''He will be an inspiration. His qualities will help us.
''His commitment is a crucial step in our efforts to strengthen the squad for future tasks, and to restructure. I look forward to working with this good professional.''
Raul scored 323 goals in 741 games for Real Madrid, as well as 44 in 102 appearances for Spain.