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The Spaniard, who has been out of work since leaving Wolves last summer, has signed a two-year contract with the option of an extra year.
The 57-year-old Spaniard had been out of work since leaving Wolves on the eve of the just-concluded Premier League season.
West Ham named former Real Madrid and Spain coach Julen Lopetegui as its new manager on Thursday to replace the departing David Moyes.
West Ham midfielder Lucas Paqueta has been charged by English soccer authorities with allegedly breaching betting rules. The case centers around four yellow cards the Brazil international received from November
West Ham and Brazil midfielder Lucas Paqueta has denied any wrongdoing after being charged by the FA for alleged breaches of betting rules.