MADRID (AFP) - PSV Eindhoven confirmed that the former Barcelona hero Ronald Koeman will leave to coach Spanish side Valencia, the Dutch club said on Wednesday night.

Valencia later made a brief announcement on its web site that Koeman would arrive in the Mediterranean city on Friday to formally sign his contract and then be presented to the media and the club's fans.

"There are no problems between the club and Ronald, we have a good relationship, but Valencia have communicated that they wanted Ronald," said PSV general director Jan Reker at a press conference, with Koeman sitting alongside him.

"Our first question to Valencia was: 'Why not next season?' but it has always been Ronald's dream to coach at a top Spanish side. This for him is a dream club and they didn't want to wait.

"There will be a lot of people here who will be unhappy but for Ronald it's a big challenge as Valencia are a big club," added Reker.

Reker said that Koeman will be signing a two-and-a-half year contract with Valencia that will take him to the summer of 2010.

Koeman is expected to be joined at Valencia by Tonny Bruins Slot who was his assistant at PSV.

"There will be good compensation, we have already agreed that with Valencia, and behind the scenes we were already planning for the future because Koeman had already indicated that he would not be extending his contract beyond next summer," added Reker.

The Dutch coach was expected to take over the reins on Monday but there was speculation that he could start the job immediately in the wake of Valencia's 5-1 defeat by league leaders Real Madrid on Wednesday.

The loss equalled the club's heaviest ever home defeat in La Liga and the club will be looking to bounce back quickly at Real Mallorca on Satuday.

Valencia, the Spanish champions in 2002 and 2004, had been looking for a big-name coach since the sacking of Quique Sanchez Flores on Monday.

Despite the club lying fourth in the Spanish first division and still in the Champions League, Flores' sacking surprised no one.

It came in the wake of more than a year of public disagreements with club president Juan Soler over transfer policy and spending.

He had also become unpopular with the Valencia crowd, especially since the loss to Chelsea in last season's European Champions League quarter-finals and four losses in the last five games sealed his fate.

"I've lost a job but regained my life. It's painful but at the same time a relief," said Flores on Monday.

Spanish media reports suggested on Wednesday that former Real Madrid coach Fabio Capello and former Chelsea coach Jose Mourinho were both approached but turned down the job before Koeman accepted.

A former central defender, Koeman scored the winning goal from one of his trademark free kicks in the 1992 Champions League final to hand Barcelona, with whom he played in 1989-1995, their first top European crown.

He was also Barcelona's assistant coach in 1998-2000.

Despite the compensation, Koeman's departure will still be a blow to PSV, who are leading the Dutch first division.

Last year Koeman, also a former coach of Benfica in Portugal, led PSV to the Dutch league title, his third as a coach having also led Ajax to the championship title in 2002 and 2004.