Carlo Ancelotti was already the strongman at Real Madrid between 2013 and 2015, but after a season without trophies he was succeeded by Zinedine Zidane.
Now the roles are reversed. Zidane was unable to give Real a trophy last season and announced his retirement himself.
Real wanted to lure old acquaintances Ancelotti back to Bernabeu, but had to buy his contract with Everton.
Ancelotti signed with Thibaut Courtois and Eden Hazard until June 2024.
The Italian is still loved in the Spanish capital after handing Real a 10th overall win in the Champions League in 2014, La Decima.
The experienced Ancelotti has also worked for Napoli, Bayern Munich, PSG, Chelsea and Milan in recent years.
