A statement on the Real Madrid website said:
Zinedine Zidane will manage Castilla next season. Zizou, who was Carlo Ancelotti’s first squad assistant coach this year, will start a new stage of his career at Real Madrid. Zidane will be joined by youth coach Santiago Sánchez and has already started working on future plans for the reserve team squad.
The move is a bit of a surprise as MARCA reported back on 26th April that Zidane would be leaving the Bernabéu when the season was over. This departure had the blessing of Florentino Pérez, who was happy for the former midfielder to go elsewhere to cut his teeth as a manager and then return to ‘Los Blancos’ in the future to fulfil his dream of coaching Real Madrid’s first team.
Zidane had been expected to return to Bordeaux, the club where he made his name as a player during four unforgettable years from 1992 to 1996). But disagreement over this summer’s transfer kitty caused an abrupt u-turn for Zidane who decided to stay at the Bernabéu.