Raul, 33, was a hero with the Madrid faithful, making 741 appearances and scoring 323 goals in a 16 year spell with the club he joined as a teenager, a spell which yielded 16 trophies including six La Liga titles and three Champions League successes.
Raul joins Schalke on a free transfer and will undergo a medical this morning before training with his team-mates for the first time later in the afternoon.
“It’s great news for FC Schalke 04,” said manager Felixe Magath in a statement on the club’s official website.
“I'm delighted we've been able to inspire such an exceptional footballer and world-class striker to move to the Bundesliga and Schalke. Raul's qualities will help us move forward.
“His signing marks a decisive step in our efforts to strengthen and restructure our squad for the tasks ahead and I look forward to working with such a likeable pro," he added.
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