Real Madrid have confirmed they have reached an agreement with Villarreal for Manuel Pellegrini to become their new coach.
The 55-year-old, who lists Argentinian giants River Plate amongst his former clubs, will be officially presented on Tuesday at midday local time at the Santiago Bernabeu.
A statement from Real Madrid read: "Real Madrid and Manuel Pellegrini have reached a deal for the Chilean coach to be the first team head coach during the forthcoming season.''
Pellegrini, who has been in charge of Villarreal since 2004 and had a year left on his contract with the Yellow Submarine, will replace Juande Ramos in the Madrid hotseat.
Ramos was installed as an interim boss on a six-month contract when he took over from Bernd Schuster in December and had a mixed spell in charge. In La Liga he guided Madrid to a remarkable run where Los Blancos picked up 52 from a possible 54 points to close the gap on leaders Barcelona.
However, his side also lost 6-2 at home to arch-rivals Barca and suffered a 5-0 aggregate defeat to Liverpool in the last 16 of the Champions League, a tournament eventually won by Barca as part of an historic trophy treble.
Pellegrini is now the man who has been tasked with closing the gap to Barca and fulfilling the goal of new Madrid president Florentino Perez to get the fallen Spanish giants back amongst the world elite.
Perez was unveiled as the club's new president on Monday and vowed to bring back the galactico era he was famous for during his first stint in charge at Madrid, when he brought Zinedine Zidane, Luis Figo and David Beckham to the club.
Perez said: "We are working towards and we will work to create a spectacular project, and that is to make Real Madrid the best club in the world once more.
"A club like Real Madrid needs to have several of the best players in the world and even though I can't discuss names today, we have a spectacular project on the sporting side."
Pellegrini is the man who will mastermind this new era and although he failed to lead Villarreal to any major trophies during his time at El Madrigal, the Chilean did help make the Yellow Submarine one of Spain's best clubs.
In his first season in charge he led the unfashionable east-coast outfit to a third-place finish, while in their subsequent Champions League campaign in the 2005/06 season Pellegrini took Villarreal to the semi-finals where they were unfortunate to lose to Arsenal.
Last season Villarreal ended up as runners-up behind champions Madrid, while this term they ended the campaign in fifth spot.
Pellegrini has also enjoyed success at previous sides, winning silverware in Chile, Argentina and Ecuador during spells at River Plate, San Lorenzo, Liga de Quito and Universidad Catolica
He's done a really good job with Villareal ... Let's see if he can take it up a notch.