SunSport told you last week that the Spanish giants would nab the Brazil superstar, 27.
Kaka passed a medical after Madrid's doctor flew to Recife where Brazil are preparing for their match with Paraguay.
A statement from Real said: "Kaka has successfully passed all the medical tests. He has signed a six-year contract."
An AC Milan statement said: "We thank the great champion for his contribution to the many victories achieved in the past six years.
"It will be very difficult to fill the void that will be left by Kaka, a shining example of commitment and professionalism.
"We offer him the most cordial and affectionate wishes for the continuation of his sporting career."
Brazil refused permission for the player to be presented by Madrid before June 30 - when the Confederations Cup in South Africa is completed.
By ANTONY KASTRINAKIS
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