The France international has returned to Ligue 1 as Claudio Ranieri seeks reinforcements to challenge for honours in the coming campaign
Monaco have completed the signing of midfielder Jeremy Toulalan from Malaga for an undisclosed fee.
Claudio Ranieri's men secured promotion from Ligue 2 last season and have wasted no time in investing club president Dmitry Rybolovlev's money to bulk the club with top signings this summer.
The France international, who has signed a two-year contract with an option to extend the deal by a season, joins the likes of Radamel Falcao, James Rodriguez and Joao Moutinho as Monaco prepare to challenge reigning champions Paris Saint-Germain for the Ligue 1 crown.
"Jeremy Toulalan, an international midfielder, has signed a two-year contract with an option for an additional year," a statement declared on the club's official website.
"The player will be introduced to the media on July 8 during the press conference for the new players."
Sporting director Vadim Vasilyev added: "We are happy with the signing of Jeremy. His skills, European and international experience will be an important asset for our team this season."
The 29-year-old's move to Stade Louis II marks his return to Ligue 1 having left Olympique Lyonnais two years ago.
Toulalan, who had been linked with Atletico Madrid, moved to Malaga in 2011 for a fee of around Ä10 million and established himself in Manuel Pellegrini's side, but the club's need to balance their books has led to his sale.