"The Real Madrid board of directors, which met today, Monday 11 March 2019, has chose to terminate Santiago Solari's contract as first-team coach, whilst Real Madrid have offered him the opportunity to remain at the club", a statement on the Real Madrid website reads.
Zidane, who spent five years at the club during the "Galacticos" era during which he won a European crown in 2002, will become the third manager this season for Real, after the dismissal of Julen Lopetegui and then Solari, who was in charge for a mere five months.
But Mourinho is now being tipped to replace Santiago Solari at Madrid due to recent results, something which Ramos is dead against.
Zinedine Zidane is back in charge at Real Madrid less than 10 months after stepping down as their boss.
It has been widely reported that out-of-favour Marcelo and captain Sergio Ramos clashed during a training session in the build up to Real Madrid's LaLiga clash on Sunday night. "But it will not be easy and I predict it will be very hard over the next three months".
Popular with players, but Bale in doubt?
Sergio Ramos looking during the second leg against Ajax
However, Barcelona still sit 12 points ahead of Los Blancos.
Here, Press Association Sport takes a look at some of the key issues for Zidane to address on his return.
Jugones claimed the decision will be made official at some time after 18.00h on Monday, with Solari set to be dismissed after Madrid's season fell apart last week.
A major difference between the Real Zidane left and that which he is re-entering is Cristiano Ronaldo no longer being at the club.
The French star played for the club and was one of Real's key "Galacticos" - a label given to the star players signed by club president Florentino Perez in the early to mid-2000s.
The Champions League is supposed to be pretty hard to win but not for this guy.