Malaga swoop for Chile midfielder Morales
The 27-year-old, who arrives on a free transfer after leaving Chilean club O'Higgins, replaces Argentine Diego Buonanotte who was sold earlier in the day to La Liga rivals Granada.
Qatar-owned Malaga, who meet Porto in the last 16 of the Champions League next month, have an option to extend Morales's contract for a further two seasons.
Before returning to Chile, Morales spent four seasons with Croatian club Dinamo Zagreb and played in the Europa League and the Champions League.
He made his Chile debut in 2008 and has 14 caps.