Rangers had reportedly been trying to sign the attacker permanently but he is rated too highly at the Bernabeu.
A Real Madrid statement read: "Daniel Parejo has been loaned to Queens Park Rangers for one year.
"The youth team midfielder will play in the Championship next season, where he will continue progressing and honing his skills."
Parejo will be unveiled by the Loftus Road club on Monday afternoon and his arrival comes hot on the heels of Lee Cook's return to W12 on loan from Fulham.
Parejo has scored two goals in seven appearances for Spain's Under-19 side.



