The 25-year-old came through the ranks of the Madrid academy and made his official first-team debut in 2010-11, but has so far been unable to become a starter at the Santiago Bernabeu side.
Nacho feels there is no shame in a substitute role, though, as his rivals are among the best in the world in their position.
"I've been working hard to earn my place on the team ever since the new coach arrived," Nacho told the official Madrid website.
"I'm no longer like the academy player I was back when I broke into the first team, now I want to fight for more and I'm trying my hardest to earn the trust of the manager.
"I've known from the very beginning the competition I was up against. Ramos, Pep and Varane could well be the three best centre backs in the world.
"They help me to improve a little bit each day. I'm delighted to be fighting with them for a place."
