Aragones replaces Saez

The Iberian side were searching for a new coach after Saez stepped down from the job following a disappointing Euro 2004 campaign.

Spain started in good form with a win over Russia, but dropped points against Greece and defeat to Portugal ended their interest in this summer's Championship.

Aragones was free to leave the Estadio Son Moix outfit, after the La Liga outfit released the veteran tactician from his contract.

A nine-man committee was set up for the RFEF (Spanish Football Federation) to decide the new man and Aragones was their first-choice.

It is believes Aragones has penned an initial two-year deal with Spain that will take him through the 2006 World Cup in Germany.

"I want to confirm that we have decided to appoint Luis Aragones to the post of Spain coach," Federation president Angel Maria Villar.

"He will take charge of the team for approximately the next two years through to the 2006 World Cup."