His decision to quit as Madrid coach suddenly left the Spanish giants in limbo.
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In May, he signed a two-year extension to remain as Spain coach until 2020 but the call of Madrid has proved stronger.
Will take over after managing Spain in the World Cup.
"So I think everybody will be happy with it, but mostly because Real were surprised by the departure of Zidane and had to react as soon as possible".
Just minutes ago, Real announced that Spain manager Julen Lopetegui will assume the reigns of Los Blancos after the World Cup.
Balague also recalled how close Lopetegui came to taking over at Wolves in 2016, before the national team came calling.
La Roja kick off their campaign against Portugal on Friday and this news will now dominate all the pre-match and pre-tournament talk in the Spain camp.
"I didn't stop to want to take the team of France".
Lopetegui has put together a record of 14 wins and six draws from his 20 games in charge of Spain, with the former goalkeeper having previously coached at Under-19, Under-20 and Under-21 levels.
Time will tell, just as it did with Zidane, but right now, the appointment of Lopetegui looks like a risky one for both Madrid and Spain.