The outspoken manager led the Santiago Bernabeu outfit to their first La Liga title in four years in 2011-12, ending Barcelona’s dominance, but was being rumoured with potential roles at Manchester United and old club Chelsea.
However, Mourinho is happy in the Spanish capital and eager to accept the challenge ahead at Los Blancos.
“I’ve always said this squad is young and that its best years are yet to come,” Mourinho told the club’s official website.
“It isn’t a squad with players on the verge of extinction or playing their final years of top tier football. The club, with its incredible social reach and structure, can adapt to the times and to what we’re trying to do.
“As a manager, I always try to grow and improve. I’ve loved the professional experience I’ve had of working for different clubs in different countries and cultures, and to learn from that while giving my best. I’ve loved that process.
“It’s different for me now because I’m thinking about a club long term, and that club is Real Madrid, which has been more demanding and has forced me to do my absolute best due to its difficulties.
“I’ve had to improve as a coach and a professional. I think it is the perfect challenge for the next four years because you always have to do more when things are hardest. I need these great challenges in the maturity of my career; I need things to force me to be better,” he concluded.
By Gareth McKnight