The Portuguese sensation is thought to have agreed a deal to become the highest-paid player in Spanish football after months of protracted negotiations
The Portugal star has finally put pen-to-paper on fresh terms at Santiago Bernabeu, ending any lingering doubts as to his future at the club following months of speculation over the talks.
Los Blancos have not yet disclosed any details of the contract, although reports in the Spanish media suggest the 28-year-old will become Spain's highest-paid player with a net salary of €17 million per year - earning more than Lionel Messi and new team-mate Gareth Bale.
It was revealed on Saturday that Ronaldo was ready to sign a new five-year deal with Madrid, with Perez eager to keep his promise of making the Portugal captain the highest-paid player in world football.
Ronaldo is thought to be set to earn 50 per cent more per annum than Bale, who eclipsed the forward's world-record transfer fee after his €100m move from Tottenham at the end of the summer.
The news brings to an end a full year of speculation over Ronaldo's commitment to the Madrid cause, beginning with the revelations that he felt "sad" in the Spanish capital last autumn over a perceived lack of support from the club's hierarchy.
Former side Manchester United were linked with a sensational move to bring the 2008 Ballon d'Or winner back to Old Trafford earlier this summer, four years after he was sold for a then-record fee of €94m.
But Ronaldo, who has 203 goals in as many games for Madrid, has always maintained a desire to stay at the club following Carlo Ancelotti's appointment, with the Italian coach himself underlining his belief that the deal would go through.
"Ronaldo wants to renew his contract and the club want him to renew. I don't think it will be a problem," Ancelotti said last month.
A press conference to confirm the news has been scheduled for 13:45CET, with president Florentino Perez set to lead the proceedings at Santiago Bernabeu.