Opposite the Royal Chapel, the Madraza Palace was the seat of the Muslim School of Koranic Law founded by Yusuf I. After the capture of the city, the building was turned into City Council, meeting in this place governing the Knights the city. A horseshoe arch gives access to the elegant mihrab, only Islamic building space that remains. Its interior is richly decorated in the style of the Alhambra .

The baroque palace which was subsequently built is structured around a courtyard with galleries of arches on Tuscan columns. The staircase is covered by a dome half decorated in Churrigueresque. The façade is Baroque with stone doorway. The windows and balconies are made of wood and wrought iron. The palace is covered with a sloping roof of Moorish tiles, showing a wooden eaves corbels as decoration.