The 48-year-old Sanchez replaces Argentinian Lavolpe, who stepped down to end his four year reign after guiding Mexico to second round of the World Cup. Sanchez will make his debut as coach against the United States in January.

Sanchez, who had been out of the game for over a year after stepping down at Pumas, took over at Aguascalientes-based side Necaxa earlier this month, but had little time to turn results around and they failed to qualify for the national playoffs.

He had guided Pumas to back-to-back championships in 2004 and also took the Mexico City giants to the final of the CONCACAF Champions Cup in 2005, losing narrowly to Costa Rican side Saprissa.

Sanchez won five consecutive league titles with Real Madrid in the 1980s and led Spain's Primera Liga in scoring five times.