Rafa Benitez is set to return to management at Panathinaikos, where he will become the highest-paid coach ever in Greece.

The former Real Madrid and Liverpool manager has been out of work for over a year, after he was fired at Celta Vigo in March.

Benitez will sign a two-year deal with Panathinaikos, who currently sit seventh in the league, having picked up nine points from six matches.

It leaves them eight points behind leaders PAOK, although they have a game in hand.

Dutch outlet De Telegraaf reports that Benitez agreed the record-breaking £3.47 million deal after meeting with club president Giannis Alafouzos in London.

Panathinaikos have not won the league title since 2010 and have only lifted it twice this century.