Pako Ayestaran has been appointed as Valencia coach on a two-year contract.
The former Liverpool assistant manager was promoted to first-team boss at Mestalla Stadium in March, initially until the end of the season.
The 53-year-old had taken over after former England defender Gary Neville was sacked following four months in charge.
Ayestaran guided his former side to 12th place in La Liga, winning three of his eight games.
The Spaniard previously managed Israeli side Maccabi Tel Aviv, guiding them to the league title in 2015.