"I'm just happy to come back".
Sanchez and Zidane fell out at the end of last season as the Frenchman chose to depart, it is claimed.
Julen Lopetegui was brought in to replace Zidane initially, but was sacked four months after his hire.
Real now lie in third place in La Liga, 12 points behind leaders and arch rivals Barcelona and neighbors Atletico Madrid. The sale of Cristiano Ronaldo over the summer and the aging stars left in the squad have resulted in trophy-less campaign that included three El Clasico losses to Barcelona and a humiliating Champions League exit at the hands of Ajax.
It was reported after Madrid's 4-1 weekend win against Real Valladolid that Solari, 42, was to be relieved of his duties on Monday, less than four months after he was given the job on a permanent basis.
Zidane was the standout favourite for Florentino Perez and the Real Madrid president was willing to do whatever it took to get him back on side. "I'm ready to coach this great club again", he told a press conference. Solari would maintain his license with Real Madrid, even though he would be coaching the reserves, - another team within the framework of the same club.