Mark Ashton says Pedro Pereira's signing shows Bristol City are keen to do business with some of Europe's biggest clubs.
The right-back has become the Robins' 10th summer signing, joining on a season-long loan from Benfica.
In a deal that resembles Jay Dasilva's loan move from Chelsea last season, City also have the option to buy the 21-year-old.
Pereira spent last season on loan at Genoa in Italy, where he caught the eye of the Robins.
City CEO Ashton says it is a sign of how ambitious the Robins are that they have been able to agree a deal for the player.
He told BCFC.co.uk: "We have been watching Pedro for some time and we are delighted he has joined us for the season.
"He is an exceptional young talent who will definitely add to Lee’s defensive options.
"This loan signing is another example that Bristol City are able to do business with the big clubs around Europe and reflects our ambition and stature in the modern game."
Robins boss Lee Johnson backed Pereira to impress at right-back.
He said: "“I’m very pleased to be working with a player of Pedro’s talent and potential.
"He’s young but has played in the top leagues in Portugal and Italy and we are confident he will be a great asset to the right-back position."
