"Valencia Club de Futbol wish to communicate to fans that they have reached an agreement with Cesare Prandelli," the club said in a statement.
"The Italian being appointed as first team coach through to June 30th, 2018."

Prandelli has been unemployed since leaving Galatasaray after just four months in charge in 2014.

The 59-year-old led Italy to the Euro 2012 final, eventually losing 4-0 to Spain, but resigned after failing to make it out of the group stages at the 2014 World Cup.

Prandelli will watch Valencia take on Atletico Madrid on Sunday, but caretaker boss Voro will continue as coach for one final match after leading Valencia to their first two victories of the season against Alaves and Leganes.

Pako Ayestaran was sacked last month after Los Che lost their first four La Liga games of the season.

Prandelii is the fourth coach of Singaporean owner Peter Lim's short spell in charge of the Spanish giants.
Nuno Espirito Santo resigned last November despite leading Valencia back into the Champions League in his only full season in charge.

Former Manchester United captain Gary Neville then endured a nightmare four-month reign before he was sacked in March, paving the way for Ayestaran's appointment.

Back-to-back victories under Voro have moved Valencia up to 15th in the table ahead of Atletico's visit to Mestalla.

However, a lack of European football and the club's heavy debts means Prandelli will have a depleted squad to work with.

A host of Valencia's best players including captain Paco Alcacer, Andre Gomes and Shkodran Mustafi were sold to recoup over 100 million euros ($112 million) in the summer transfer window.