Carlo Ancelotti has returned to Real Madrid as manager after previously holding the job from 2013 to 2015, the club announced Tuesday.
David Ornstein and Greg O'Keeffe of The Athletic first reported the completion of an agreement between the two sides.
The 61-year-old spent the past year at Everton in the Premier League but terminated his contract with three years remaining, per Fabrizio Romano.
Ancelotti led Real Madrid to a UEFA Champions League title in 2014 but was let go in 2015 after his second season without a La Liga crown.
The manager's extensive career also includes time at top European clubs Juventus, Milan, Chelsea, PSG, Bayern Munich and Napoli. He won two more Champions League titles at Milan, and his resume boasts first-place finishes in Serie A, the Premier League, Bundesliga and Ligue 1.
The stint at Everton wasn't quite as successful. The Toffees finished 10th in the EPL last season while failing to qualify for any European competition in 2021-22.
Ancelotti will look for more success in his return to Real Madrid, replacing Zinedine Zidane after the former star player resigned last week.
Los Blancos failed to secure a trophy in 2020-21, finishing second in La Liga after losing to Chelsea in the UCL semifinal. The aging roster also has plenty of question marks, with many of its key players from last season all over 30 years old, including Karim Benzema, Sergio Ramos, Luka Modric and Toni Kroos.
It will create a challenge for Ancelotti to live up to lofty expectations at the Spanish club.