On Wednesday, November 15, Real Madrid President Ramon Calderon confirmed the signings of Gago as well as Higuaín.

However, news later put reports of Higuain's departure to Real Madrid to rest as River Plate rejected a 10 million euro bid for the striker stating they would prefer him remain until at least June 2007.

During the 2006 South American transfer saga, Gago's name was also linked with AC Milan. However, Ariedo Braida, Milan's top transfer guru recently said that, "They (Gago and Higuaín) only want to go to Real Madrid".

The transfer was finally transfered agreed on December 19. Gago made his debut for Real Madrid in the 2-0 La Liga defeat against Deportivo La Coruna on January 7, 2007. This promised to be an exciting start for the extremely talented midfielder, however due to the poor performance of the entire real madrid outfit, Gago's apparent talent was not withstanding, and, after being at fault for the opening goal by breaking from the rest of the defensive wall at a free-kick, he was substituted for Ronaldo.

However, a week later, against Real Zaragoza at Santiago Bernabeu, Gago's performance lifted along with that of his team mates. His defensive game picked up considerably as he fought hard in midfield, while also demonstrating vision by delivering several through balls to the attackers.

Real Madrid defeated Real Zaragoza 1-0], with a goal from Ruud van Nistelrooy, created by fellow new signing Gonzalo Higuain. Judging from this performance, there is more to come from both these youngsters.