"Ramon Diaz has become River Plate's new coach. This Thursday afternoon, the club's president [Daniel Passarella] verbally agreed Ramon Diaz's arrival," the record 33-times league champions told their official website.
The 53-year-old had previous spells in charge between 1995-99 and 2001/02, but this is likely to be the hardest since River, back in the first division after their traumatic relegation last year, do not have the gifted squad they had then.
Under Diaz, the club's most successful coach, River won five league titles, the 1996 Libertadores Cup and 1997 South American Supercup with a squad that included Uruguayan Enzo Francescoli and Argentines Andres D'Alessandro, Pablo Aimar and Javier Saviola.
Many of the club's supporters would have liked Diaz to take charge when River were struggling to avoid relegation in 2010/11 but he does not have a close relationship with Passarella who appeared determined not to give in to fan pressure last season.
Former Inter Milan, Monaco and Argentina striker Diaz, River's fifth coach during Passarella's presidency since December 2009, will attend Sunday's home match against title chasing Lanus at the Monumental but will not take charge until next week.
"[Diaz], who enjoys enormous affection from Millo fans, will sign his contract on Friday and take charge of his first match against San Martin," said River using an abbreviation of the club's nickname Millonarios.
