The 25-year-old England international tore the hamstring in his left leg when playing against Zaragoza
The 47-year-old, who has coached Getafe for the last two seasons, replaces Fabio Capello, who was sacked at the end of June.
The 61-year-old Italian, who also won the league title with Real in the 1996-97 season during his first spell at the club, had two years left to run on his contract.
He was unveiled at the Nou Camp after passing a medical and putting pen to paper on a four-year deal with the Primera Liga side.
The 29-year-old France striker will sign a four-year contract with the Spanish club.
David Beckham said on Thursday that Real Madrid's failure to offer him a convincing contract renewal offer was behind his decision to leave the nine-times European champions and sign for MLS side LA Galaxy.
Leaders Real Madrid edged closer to the Primera Liga title beating Deportivo Coruna 3-1 in the Bernabeu on Saturday.
Leaders Barcelona edged closer to their third consecutive league title with a 2-0 away win over struggling Real Sociedad in the Primera Liga on Saturday.
Barcelona coach Frank Rijkaard said his side's profligacy in front of goal was a concern.
David Beckham returned from a six-week injury absence to set up Real Madrid's winner in a 2-1 victory over Primera Liga title rivals Valencia at the Bernabeu on Saturday.
The referee who presided over Real Madrid's 2-1 Primera Liga defeat away to Racing Santander on Saturday said he has received death threats.
Real Madrid staged a classic smash-and-grab to beat Celta Vigo 2-1 away and move back to third in the Primera Liga on Sunday.
Barcelona turned on the style to pull three points clear at the top of the Primera Liga with a 2-1 win over Deportivo Coruna on Saturday.
Sevilla and Real Madrid kept the pressure on leaders Barcelona with home wins in the Primera Liga on Sunday.
The Dutch striker has agreed a three-year contract with Spanish Primera Liga side.
The Spanish club said they had no interest in signing Manchester United centre-back Rio Ferdinand or any other member of the club's squad.
Valencia beat leaders Barcelona 2-1 at the Mestalla to put themselves firmly in the Primera Liga title race.
David Beckham was sent off in the final minute of Real Madrid's 0-0 home draw with Real Betis
Barcelona forward Ronaldinho recaptured his form on Sunday when he struck twice to lead his side to a 2-0 win at home to Racing Santander that put them three points clear at the top of the Primera Liga.
Real coach Fabio Capello had said Beckham would never play for the Primera Liga side again.
Fernando Morientes scored twice to help Valencia climb to third place with a 3-1 home win over direct rivals Atletico Madrid in the Primera Liga on Saturday.
With Barca enjoying a nine-point cushion at the top of the Primera Liga and only eight games left, even a draw would leave Real facing their second trophyless season in a row.
Real Madrid were dumped out of the King's Cup by Primera Liga strugglers Real Betis on the away goals rule after they were held to a 1-1 draw at the Bernabeu on Thursday.
Barcelona wasted a chance to go top of the Spanish Primera Liga by slumping to a 3-1 defeat at city rivals Espanyol.
Real Madrid agreed to sign the highly-rated 20-year-old Argentine midfielder from Boca Juniors on a six-and-a-half-year contract.
Goals from Ronaldo and Roberto Carlos moved Real Madrid up to second in the Primera Liga on Sunday.
Barcelona were held to a 1-1 draw away to Levante in the Primera Liga.
The Argentine midfielder signed a new four-year deal with Real Madrid.
A goal from captain Raul allowed Real Madrid to snatch a 1-0 win against Valencia in the Primera Liga.
Barcelona forward Ronaldinho turned on the style as he steered his side to an emphatic 4-0 win at home Villarreal that put them four points clear at the top of the Primera Liga.
Ronaldinho led Barcelona to a 3-1 win over Real Zaragoza while Ruud van Nistelrooy scored all four goals in Real Madrid's 4-1 win over Osasuna.
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