Barcelona on Monday appointed former Real Betis manager Quique Setien as their new head coach to replace Ernesto Valverde.
The La Liga champions confirmed the sacking of Valverde on Monday evening.
The 55-year-old departing the Nou Camp after a board meeting was held earlier in the day to discuss his future.
In a statement, Barca said: ‘FC Barcelona and Quique Setien have reached an agreement for their incorporation as coach of the first football team until June 30, 2022.’
Valverde leaves the Catalan club having won back-to-back league titles and the Copa del Rey in 2017/18, however the former Barca boss was tainted by his failures in the Champions League – after throwing away a 3-0 first leg lead over Liverpool in last season’s semi-final.
Setien, 61, led Betis to their highest finish since 2005 and to the Copa del Rey semis before leaving in May.
He has agreed to a two-and-a-half-year deal and will be presented to the media at 13:30 GMT on Tuesday.
In a statement, Barca said they had reached an agreement with Valverde to terminate his contract and thanked him “for his professionalism, his commitment, his dedication and his always positive treatment towards all that make up the Barca family”.
Valverde was under pressure towards the end of last season following the ignominious Champions League semi-final defeat by Liverpool, having led 3-0 after the first leg, and the Copa del Rey final loss to Valencia.