"Real Madrid, by means of this option, have the freedom to sign the player or not in the future if it considers it opportune.
"Being signed by such a great team like Real Madrid is the result of all the good work I've been making in my career," Cicinho said.
"This agreement is good for all the parties - me, my managers and the Sao Paulo board. I'm delighted," he added.
In the meantime, Cicinho hopes he can help Sao Paulo escape from the relegation zone in the Campeonato Brasileiro.
"This is the time to think about Sao Paulo and I'm sure they will leave these bad moments. Real Madrid will come in January."