"An agreement in principle (...) ties the two parties together for the 2014/15 season with the possibility of extending the contract by a further year," read a statement on Levante's website.

Mendilibar, 53, had been out of a job following his dismissal last September from Osasuna, who were relegated from the Spanish top flight on the final day of the season.

Mendilibar also previously had managerial spells at Eibar, Athletic Bilbao and Valladolid.

He takes over the Levante hotseat from Joaquin Caparros, who on Wednesday joined La Liga rivals Granada on a two-year deal just days after Spanish media reported he was set to sign an extension with Levante having guided them to a 10th-place finish.