Florentino Perez, launched his second term as president Monday by naming France legend Zinedine Zidane as his advisor.
Just hours after the being sworn in, the club also announced former Argentine striker and coach Jorge Valdano as its director general.
There was no official word from Real on a new coach, but Chilean Manuel Pellegrini, who has transformed the fortunes of Villarreal, was tipped to take over from Juande Ramos, who was handed a six-month contract in mid-December.
"The two clubs understand each other well and an agreement has been reached," said Villarreal director general Jose Manuel Llaneza, adding no contract has yet been signed.
