The Italian side have been working on a deal to bring the Serbian international to Florence since the start of the month.
Jovic has struggled to make an impact in Madrid following his 2019 move from Eintracht Frankfurt.
His haul of 40 goals in 93 games in Germany tempted Los Blancos into a move but he leaves the Spanish capital with a miserable return of three goals in 51 appearances in Spanish football.
Luka Jovic è Viola 💜
— ACF Fiorentina (@acffiorentina) July 8, 2022
The deal represents a major financial loss for Real Madrid after they paid £56m to bring him to the club.
However, according to transfer expert Fabrizio Romano, Real Madrid have included a 50% sell on clause in the deal, to allow Fiorentina to avoid paying a transfer fee.
Official, confirmed. Luka Jović joins Fiorentina on permanent deal from Real Madrid – contract until June 2024. 🟣🤝 #transfers
Fiorentina have also signed former Tottenham goalkeeper Pierluigi Gollini from Atalanta. pic.twitter.com/sbfsaYklgc
— Fabrizio Romano (@FabrizioRomano) July 8, 2022
Real Madrid will keep a close eye on Jovic’s progress in Italy as he seeks to get his career back on track.