The 48-year-old worked as an assistant to Quique Sanchez Flores at Getafe, Valencia, Benfica and Atletico Madrid and took charge at Elche in 2012 for his first role as a head coach.
"I'm grateful for this opportunity," Escriba told a news conference on Wednesday.
"We know we won't be leaders from the first to the last round of matches as we have been this year but we will be fighting to avoid relegation.
"Our objective is to consolidate the team in the Primera Division and to grow together."
The Alicante-based club have also secured the second division title and lie seven points clear of second-placed Villarreal with two games left to play.
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