Monchi left Roma earlier this month after coach Eusebio Di Francesco was sacked following their last-16 defeat by Porto in the Champions League.
He had been heavily tipped to join Arsenal and reunite with coach Unai Emery, whom he worked alongside while Emery was in charge at Sevilla between 2013 and 2016.
Instead, Monchi has chosen to move back to Sevilla, where he worked between 2000 and 2017 and oversaw them winning the Europa League five times and the Copa del Rey twice.
The former goalkeeper also spent nine seasons with the club’s first team as a player.
“Monchi has returned to what will always be his home,” Sevilla said in a statement on Sunday.
“Sevilla FC and Monchi have reached an agreement for him to return to what had been his position until two years ago, as general sports director of the club. His role will be effective from April 1.”
Sevilla sacked Pablo Machin as coach on Friday after a run of three wins in 11 games left them five points adrift of La Liga’s top four and out of the Europa League.
Joaquin Caparros, previously the club’s sporting director, has been installed as Machin’s replacement until the end of the season.
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