The move ends months of speculation, with the 28-year-old midfielder having been strongly linked to La Rosaleda for weeks before the club made it official.
Martínez arrives as a free agent after his contract at Levante expired on 30 June, following seven years at the club during which he also had loan spells at Mirandés and Huesca. He spent last season captaining the Valencian side for large periods under Julián Calero, making 27 appearances with a goal and five assists in LaLiga.
He signs with Málaga until June 2027, with the option of a further year, becoming the club's fifth summer addition after Carlos Dotor, Juan Cruz, José Salinas and Fernando Calero.
The arrival fulfils one of head coach Juanfran Funes' key requests to strengthen the midfield, with Martínez's attacking profile expected to give Málaga more of a goal threat from deeper positions.
Rayo Vallecano and Sevilla were among the other La Liga clubs to make approaches during the summer, but Martínez ultimately opted for the Málaga project. The move was confirmed by the club on Friday, after his registration had already appeared in LaLiga's official records.
Martínez will wear the number 18 shirt and is available for selection when Málaga host Deportivo de La Coruña on Monday at 21:30. Born in Madrid, he came through Alcorcón's academy before joining Levante in 2019, where he became one of the dressing room's senior figures across seven seasons.
He arrives at a club playing in the Spanish top flight for the first time in eight years, after Juanfran Funes led Málaga back to Primera División via the promotion play-offs in June.
The sporting department is continuing to work on a more defensively-oriented option for central midfield, with Nemanja Gudelj among the names under consideration to complement Martínez's more advanced profile.