The 49-year-old Spaniard is the third foreigner to coach the Portuguese national team, having already worked at English clubs Swansea, Wigan, and Everton.
He succeeds Fernando Santos, who led the Portuguese national team since 2014, having won Euro 2016 and the 2019 European Nations League. Portugal were stunned by Morocco in the quarter-finals of the FIFA World Cup 2022 in Qatar, causing Santos to step down from his job.