Brazilian midfielder Kakà returned to his first European club AC Milan on Monday following a troubled four-year tenure with Real Madrid.

Kakà, whose real name is Ricardo Izecson dos Santos Leite, accepted a substantial pay cut to come back to the club where his talent earned him the FIFA World Player of the Year award in 2007.

Italian media reports Kakà signed a two-year contract with AC Milan with an annual base pay of around $5.3 million.

With Real Madrid, Kakà earned nearly triple that amount, at $14.5 million a year.

The agreement between Real Madrid and AC Milan on the transfer came Sunday night, just three days after Kakà went public with his desire to leave the Blancos for another European team where he would get more playing time.

Now 31, Kakà was acquired by the Spanish club in 2009 for a transfer fee of $85 million but struggled throughout his time with Real Madrid, due in part to a spate of injuries.

The Brazilian scored 70 goals in 193 appearances during his initial six-year stint with AC Milan and was instrumental in the club's 2007 Champions League title. 

Along with Kakà, Real Madrid also lost German midfielder Mesut Özil, whom Arsenal took for a transfer fee that set a new record for the Premier League club.

Real Madrid confirmed the transaction, but neither team disclosed the mount of money involved or the duration of Özil's contract with the London side.

Media accounts said the fee was in the neighborhood of $66 million.

Özil, 24, came to Real Madrid from Germany's Werder Bremen in 2010 for $23.7 million.

"We are extremely pleased to have signed Mesut Özil," Arsenal manager Arsene Wenger said. "He is a great player, with proven quality at both club and international level."

"I have said throughout the summer that we have been working hard to bring in top quality players to this football club," Wenger said.

Real Madrid agreed to let Özil go the same day the Blancos signed Welsh midfielder Gareth Bale, who scored 26 goals in the Premier League last year playing for Arsenal's north London rival, Tottenham Hotspur.

"I am thrilled to be joining a club of the stature of Arsenal and am looking forward to playing in the Premier League," the German international said in a statement posted on the English side's Web site.

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