Perez has been criticised in the past for buying big-name attacking players with marketing appeal while neglecting the team's obvious deficiencies at the back.

Indeed the strategy, dubbed 'Zidanes y Pavones' after the two players that represented both the best and worst aspects of the Real Madrid side, was widely accepted to have cost the club in both the Primera Liga and the Champions League last season.

However, there was no let up in the recruitment drive in the summer and Michael Owen was added to established stars Ronaldo, Zinedine Zidane, Luis Figo, David Beckham and Roberto Carlos.

Then-manager Jose Antonio Camacho also brought in Argentinian defender Walter Samuel and Jonathan Woodgate from Newcastle for a combined 44million euros (£30million) although the latter is yet to feature for his new club because of injury.

But Perez believes he has taken the club forward in the right way.

"I defend to the death my policy of the Galacticos," Perez told Spanish radio station Cadena Ser.

"It's the only possible economic and sporting model for this club.

"Our main achievement is that we have a higher revenue than expenses and it's an achievement...now all our players are paid for at the right time."

"Very rich Russian and Arab people have come here wanting to buy clubs.

"This model allows us to be independent, our revenue is higher than our expenses.

"We have the best players and we have an important image in the world."

However, Perez refutes the accusation that Owen's arrival was nothing more than a marketing tool.

"It's far from the truth. He (Owen) is a European footballer of the year, one of the great players that we wanted. He had one year left on his contract and he could come at a reasonable price," he said.

"Owen was in our plans, he is one of those great players that we were interested in.

"When I arrived I knew that two players were going to come to Madrid, Figo and Zidane, because then they were the best players.

"I didn't think of Ronaldo because he was injured and then he recovered and he became the next one."

"Our strategy is for the best players to come and everyone knows who the best players are."

Perez accepts though that the 'galacticos' policy is becoming increasingly hard to maintain, even though Real have been linked with moves for Brazilian wonderkid Robinho and compatriot Adriano in the summer.

"Like in any company you have to modernise," he said.

"It's not easy to continue to include more talents in the team because unlike four or five years ago they are more difficult to find.

"What I am convinced is that the players that come, will stay here, age and then they have to leave, it's the law of life and it's happened in the past.

"All I can say is that all of those players that have lost their will to play should leave and it's not a question of age."

That remark could well be directed at Figo who is not the force he once was at the Bernabeu.

The Portuguese winger was named FIFA World player of the year in 2001, but there has been speculation that he could move on in the summer for a knock-down price, as he has less than 18 months remaining on his contract at the club.

Perez also paid tribute to the impact new boss Wanderley Luxem-burgo has had on Madrid's season.

The former Brazilian national coach took over after Mariano Garcia Remon was sacked at the end of 2004, and he promptly led the club to seven straight victories in his first seven games in charge.

"He has done a great job," Perez said.

"He has a lot of experience. He has won many titles and we hope he can put that experience into practice at Real Madrid.

"It's not easy to coach the Real Madrid team. It's a team has has many accumulated talents and it's not easy.

"Players have some vices and some virtues but I like to think of the virtues.

"For example Ronaldo has some vices but he is such a good player and that is what history will remember him for."

Perez also promised that Real will not give up hope of securing the Primera Liga title this season.

"We are going to fight to win the league," he added.

"Being second is not what we like as Real Madrid want to be champions."