Malaga hired former German player Bernd Schuster to be its coach for the next five seasons on Friday.
Schuster will replace Manuel Pellegrini, who is expected to take over Manchester City for the fired Roberto Mancini.
The 53-year-old Schuster has coached for various clubs after finishing a successful playing career that included stints with Spanish powerhouses Barcelona, Real Madrid, and Atletico Madrid.
Malaga qualified for the Europa League next season after finishing sixth place in the Spanish league but was banned by UEFA from one season of European competition for not paying wages and taxes on time.
Malaga is entering a transitional phase following its debut in the Champions League last season when it reached the quarterfinals. It has sold several players over the past year such as Santi Cazorla and Nacho Monreal to Arsenal, a change in direction that Pellegrini criticized.
'A solid, long-term project'
Malaga said in a statement that it "entrusted [Schuster] to develop a solid, long-term project."
As a manager, Schuster led Madrid to the 2008 Spanish league title in his first campaign before being fired midway through the next season. He most recently coached Turkish side Besiktas in 2011.
After beginning his playing career in Germany, Schuster joined Barcelona in 1980 and helped it win one league title and three Copas del Rey. He then moved to fierce rival Madrid and won two more league titles before playing three years with Atletico. He returned to Germany for Bayer Leverkusen before finishing his career in the United States and Mexico.