The 32-year-old has put pen to paper on a deal which is set to see him reside at the Allianz Arena under former Barcelona boss Pep Guardiola until 2016.
Alonso, who retired from Spain duty on Wednesday following World Cup 2014's group stage exit, had been with the reigning European champions since joining for an undisclosed fee from Liverpool five years ago.
Madrid had brought on board Toni Kroos from Bayern and James Rodriguez from Monaco as midfield options, with Angel Di Maria heading to Manchester United, but Alonso's exit late in the window has come as a surprise.
He will provide central midfield reinforcements for the Bavarians, who are currently without Javi Martinez, Bastian Schweinsteiger and Thiago Alcantara due to injury.
Yeah yeah we needed him no more
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