(CNN) -- Chilean coach Manuel Pellegrini has been unveiled at the Santiago Bernabeu stadium as the new coach of Spanish giants Real Madrid, signing a two-year deal with the side.
Manuel Pellegrini is Real Madrid's new head coach, replacing Juande Ramos.
Pellegrini moves from La Liga rivals Villareal, where he helped guide the side known as the "Yellow Submarine" to two Champions League qualifications during a five-year tenure.
The 55-year-old, who previously coached in Argentina with San Lorenzo and River Plate becomes the eighth non-European to head the side and replaces Juande Ramos, whose six-month contract with the club expired at the end of the season.
The appointment of Pellegrini was announced on the club's Web site with the following statement: "Real Madrid C.F. and Manuel Pellegrini have reached a deal for the Chilean to become the first team head coach."
The club also confirmed that Pellegrini would be joined by two former players in further additions to the side's backroom staff. Fellow South American Jorge Valdano of Argentina will be the new Director General and Presidential Aide of Real Madrid, while former France captain, Zinedine Zidane, will serve as an advisor.
The new appointments are the first moves by Florentino Perez, Real's new president, to raise standards at the richest club in the world having previously held office between 2000-06.
Real were beaten by their arch-rivals Barcelona to both the La Liga title and the domestic cup, the Copa Del Rey, before witnessing an unprecedented treble when the Catalans beat England's Manchester United 2-0 to win the Champions League for the third time and cap a fantastic 2008-09 season.
Speaking on Monday, Perez outlined his vision for the future by telling the club Web site: "I assure you that we will make this Real Madrid a great symbol and example. We are going to rebuild and reassert the dreams of all Madridistas.
"We must recover the dreams, stability and lost time. Real Madrid must dismiss all doubts in the pursuit of the goal that has always gone hand in hand with its spirit: work at all times to be considered the Best Club of the 21st Century."
Perez looks set to repeat his "Los Galacticos" recruitment policy of last term, based on attracting the world's biggest and most marketable stars.
The 62-year-old sealed transfers for Zidane, Ronaldo, Luis Figo, David Beckham and Michael Owen among others, to a side that won the Primera Liga twice and European Champions League under his leadership.
"We will devote all our effort to building a spectacular team with great players who are role models on and off the pitch," he said, in a statement that could have interesting ramifications for some of the biggest stars in football who could be at the center of big money moves during the European close season.