Real Madrid have reappointed Zinedine Zidane as coach on a three-year deal after sacking Santiago Solari, the Liga club said on Monday, following their exit from the Champions League.

"Real Madrid's board met today and decided to end the contract linking Santiago Solari to the club as first team coach and, at the same time, have offered to keep him at the club,"Madrid said in a statement.

"The board have named Zinedine Zidane as the new coach to be incorporated immediately for the rest of the season and the next three, until June 30, 2022."

Frenchman Zidane won an unprecedented three consecutive Champions League titles with the Spanish giants before resigning in May last year, with his replacement Julen Lopetegui sacked in October and Solari lasting just over four months in charge.

Madrid were eliminated from the Champions League in the last 16 by Ajax Amsterdam on Tuesday after two Clasico defeats by Barcelona, knocking Real out of the Copa del Rey and leaving them 12 points adrift of the Catalan league leaders.