Sevilla have announced that Michel will become Marcelino Garcia Toral's replacement following his dismissal on Monday.
Michel will automatically receive an extension to the contract should he guide the 11th-placed side to UEFA Champions League qualification.
The former Real Madrid midfielder made 404 appearances for the Bernabeu side over his 14-year stay at the club whilst netting 97 goals.
Marcelino only joined the club in 2011 but with only two points from the last seven games in La Liga, the club decided it was time for a change in leadership.
