Kaka returns to Milan, where he enjoyed the best football of his career and won the Best Player in Europe award, after leaving for the Bernabeu four years ago on a deal of around £56m.
The 31-year-old has agreed a two-year contract with the Rossonero following lengthy discussions over the weekend.
Kaka endured a frustrating time in Madrid where he spent several spells on the sidelines due to injury.
But the Brazil international will be hoping to rekindle the form in his first spell at the San Siro as he aims to represent his country when they host the World Cup next year.
A Milan statement read: "Last night after 2000 CET, thanks to the traditionally good relationship between the two clubs, Real Madrid and Milan reached and formalised an agreement for the transfer of Ricardo Kaka into Rossonero colours.
"And overnight, a little before 0300 CET in the morning, an agreement was
reached with the world-class Brazilian."
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