The Argentina international is pleased to see his compatriot complete a move to the Mestalla, and is confident that he will improve Los Che's passing game
The defensive midfielder finalised a move from Real Madrid to Mestalla for a reported €3.5 million after spending last season on loan at Roma.
Banega revealed how he convinced the former Boca Juniors man to join Los Che, and believes his experience and style of play will help improve the team.
"He is one of the people I know best, he is a good guy,” Banega told reporters at a press conference.
“I have played a lot of games with him and now he is here. Hopefully you recognise how much experience he has.
"He asked me about the club and I said that Valencia are one of the biggest teams in European football, and he made his decision after that.
"We have all seen him play before; he plays very well with the ball at his feet, executes many short passes and makes his team-mates look smart and the game easy,” Banega praised.
Gago joined Madrid from Boca Juniors in January 2007 for a fee of around €20 million.