Real Madrid president Florentino Perez tempted Zinedine Zidane back to the Bernabeu by promising him £300m in transfer funds, according to a report.
Los Blancos announced the Frenchman's shock return on Monday evening, less than 10 months after he walked out on the club.
Zidane bowed out on May 31, five days after leading Real to a third Champions League crown in a row, but he is now back in the dugout.
After the failed experiments of Julen Lopetegui and then Santiago Solari, Perez was under pressure to get this third appointment of the season spot on.
The Independent suggests that Zidane was the Spanish giants' top choice, but he was only persuaded to take on the job when told he will have large funds to completely overhaul the squad.
Madrid will reportedly bring in a 'galactico' this summer for the first time since James Rodriguez was signed in 2014, and they may even have two other high-profile arrivals.
Paris Saint-Germain forward Neymar is a long-term target, as are Tottenham Hotspur's Christian Eriksen, Chelsea's Eden Hazard and Kylian Mbappe, also of PSG.