The Spanish Super Cup tournament will be played in Saudi Arabia in January 2020, the national football association (RFEF) said on Monday.
The four-team event features Barcelona, Real Madrid, Atletico Madrid and Valencia at the 62,000-capacity King Abdullah Sports City stadium in Jeddah.
Spanish newspaper ABC said the federation would earn between £29-£34m a year from the three-year deal.
But a government official and La Liga have criticised the move.
Spain’s acting junior minister for sport, Maria Jose Rienda, said the government would not support holding the competition “in countries where women’s rights are not respected”.