Villarreal have named Ernesto Valverde as new coach.

Valverde, who has signed a one-year contract with the option for a second year, replaces Manuel Pellegrini who became coach at Real Madrid on Monday.

The 45-year-old former player, returns to Spain after a successful year working in Greece, where he led Olympiacos to the Greek league and Cup titles.

Before moving to Greece, Valverde coached Espanyol for two seasons, leading the Barcelona-based club to the 2007 UEFA Cup final, where they lost on penalties to Sevilla.