Real Madrid has signed Brazilian midfielder Carlos Henrique Casemiro on loan after striking a last-minute deal with Sao Paulo before Thursday's winter transfer deadline.

The 20-year-old will stay at the Bernabeu until the end of the season with the Spanish giants having the option of buying him in the summer, Real Madrid confirmed on its website.

"He is going to initially train with the B side with the hope of later playing in the first team," Casemiro's agent Joseph Lee told Brazil's Lancenet.

"He wasn't getting many opportunities with Sao Paulo and he needs to play. The proposal came and the player was interested."

Casemiro is a product of Sao Paulo's youth system and has represented Brazil at under 17 and under 20 level.