The deal comes after Benzema’s departure from Real Madrid where he had a successful 14-year career. Reports suggest that Benzema’s contract with Al-Ittihad is valued at over €100m (£86m) per season.
“It’s a good league and there are many good players,” said Benzema.
“Cristiano Ronaldo is already there, a friend which shows Saudi Arabia is starting to further progress its level. I am here to win, like I did in Europe”.
“I have been fortunate to achieve amazing things in my career and achieve everything I can in Spain and Europe. It now feels the time is right for a new challenge and project.”
Madrid’s coach Ancelloti said Benzema’s exit was a suprise to them.
“Yes it was a surprise, it was a massive surprise for everyone, but we had to understand that he thought about it twice and this is part of a process that started at this club some years ago, a transition that will continue next season,” he said.
“So, we have enough time to think about what we need to do to replace Benzema and the squad will be very competitive next season, I can assure you of that.”
Following his transfer from Lyon iin 2009, Benzema played 648 times for Madrid. He scored with his final touch for the team, netting a penalty in Sunday’s 1-1 draw with Athletic Bilbao.