Real Madrid appointed Jose Mourinho as their new manager on a three-year contract on Thursday, turning back to the Portuguese tactician who once delivered them a record-breaking LaLiga triumph but has not won a league title since leaving the Spanish capital.

"Jose Mourinho will join Real Madrid on July 13, the day preseason begins," Real said in a statement.

The move comes after Real endured a humiliating end to their domestic campaign, with Barcelona clinching the league title with a 2-0 victory in 'El Clasico' earlier this month.

It marked the first time in 94 years that the Spanish league had been decided by a meeting between the fierce rivals.

The record 15-times Champions League winners have also failed to clear the quarter-final stage in the last two seasons, prompting club president Florentino Perez to act decisively after two seasons without a major trophy.