Benayoun was Racing's top goalscorer last season
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West Ham have completed the signing of Israeli international Yossi Benayoun, 24, from Racing Santander for £2.5m.
He signed a four-year contract on Saturday, with the move confirmed when he was granted a work permit on Monday.
"I am absolutely thrilled to be joining such a big club and can't wait to play in the Premiership," he said.
"I know other clubs were interested in me, but I was very impressed when I met the people at West Ham. I also think my qualities suit their style of play."
Boss Alan Pardew revealed his delight at capturing such a creative player for their Premiership campaign.
"We're delighted to have secured the signature of Yossi and I'm sure he'll prove to be a great asset to our squad," said Pardew.
"He's a creative midfield player, who brings an educated discipline to the attack. But he's also a diligent player, who hardly misses a game and has improved year on year in La Liga.
"He's a player with flair, who'll be able to open the door for us when teams sit deep. We needed a player like that and at 24 he is a great signing for the club."