Rafa Benitez has been appointed the coach of Real Madrid for the next three seasons, the Spanish club said on Wednesday.
Spaniard Benitez, 55, left Napoli at the end of the season and takes over from Italian Carlo Ancelotti at the Bernabeu.
"Real Madrid will present Rafa Benitez as the new coach for the next three seasons on Wednesday, June 3," read a statement posted on the club's website.
Ancelotti was dismissed 12 months after ending 12 years of Champions League failure by leading Real to a record-extending 10th European crown.
Benitez had a stint in Real's youth set-up in the 1990s and then graduated to several modest teams in Spain as he developed his coaching philosophy.
He first made his name with Valencia whom he led to two La Liga titles before leaving for Liverpool, where he won the FA Cup and the Champions League during a six-year stay.
After leaving the Merseyside club he moved on to Inter Milan but was sacked just three months into the 2010-11 season.
The former Chelsea coach had mixed fortunes during his last job with Napoli.
Napoli won the Coppa Italia last term and finished third in Serie A but went down 4-2 to Lazio in Benitez's last match in charge to finish fifth in Serie A outside the Champions League qualifying places.
"A methodical tactician, tireless worker and footballing scholar, Benitez is one of the greatest coaches on the global stage," Real said.
"While his achievements speak for themselves, so too does his knowledge of the club and the values associated with Real Madrid.
"With his status among the elite managers cemented, Benitez now makes his return to Real Madrid with the objective of adding more silverware to the world's most lauded club."
Image: Rafael Benitez
Photograph: Ciro De Luca/Reuters