Carlo Ancelotti has signed a three-year deal with Real Madrid.
The Italian coach has been reappointed as Real Madrid manager after being only 18 months in charge of Everton.
He returns after Zinedine Zidane decided to leave Bernabeu without any silverware this season.
Club legend Raul and Antonio Conte were also in the frame to take the managerial role at Bernabeu.
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Ancelotti said: “I would like to thank the board of directors, the players, and the Evertonians for the tremendous support they have all given me during my time at the club.
“I have complete respect for everyone associated with Everton and hope they can achieve the exciting opportunities they have in front of them.
“While I have enjoyed being at Everton I have been presented with an unexpected opportunity which I believe is the right move for me and my family at this time.”
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