Monchi will return to La Liga club Sevilla as sporting director, ending reported links with Arsenal.
The Spaniard was available after leaving his role as director of football at Roma at the start of March.
He had been linked with Arsenal after previously working with current Gunners manager Unai Emery at Sevilla between 2013 and 2016.
Monchi, 50, played 115 times for Sevilla during his career as a goalkeeper.
A statement from Sevilla read: "Sevilla FC and Monchi have come to an agreement for the San Fernando native to return to the post he left two years ago - sporting director of Sevilla Football Club."
Monchi was the sporting director for 17 years during his first spell at Sevilla.
He is known for spotting talent, bringing former Manchester City winger Jesus Navas, and Real Madrid and Spain captain Sergio Ramos to Sevilla, who are currently sixth in La Liga.
Paris St-Germain's Dani Alves and Barcelona midfielder Ivan Rakitic were also bought and then sold for huge profit.
Arsenal are looking to make an appointment after recruitment head Sven Mislintat left in February.