Madrid president Florentino Perez made the announcement at the club's Santiago Bernabeu stadium alongside Emirates chairman Sheikh Ahmed bin Saeed Al Maktoum.
The Dubai-based airline will become the club's main sponsor from the start of next season through to the end of the 2017-18 campaign.
Perez did not reveal any figures but Spanish media reports suggested the deal will be worth 30 million euros per season.
By way of comparison, Barcelona signed a five-year deal in 2011 with the Qatar Foundation worth 171 million euros.
As of next season, Qatar Airways will replace the Qatar Foundation on the Catalan club's strip.
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