Aguirre returns to Spanish football after a two-year hiatus, during which he took charge of the Mexico national team. At this year's World Cup, Aguirre guided Mexico to their first knockout win at the tournament since 1986 on home soil, before falling to a 3-2 defeat against England in the last 16.
Valencia will be the seventh Spanish club that Aguirre has managed. The club have an option to extend his contract for a further year.
After collecting one point from their opening five games, Valencia sacked Corberan. Sanchez took charge for the subsequent two LaLiga matches before the international break, where Valencia beat Alaves and then lost to Real Sociedad.
It leaves Valencia in 19th place in the standings with four points. On September 13 the club announced the departure of CEO of Football Ron Gourlay and Corberan, bringing back Braulio Vazquez for a second spell as sporting director the same day.
The experienced duo of Aguirre and Vazquez will now be in charge of dragging Valencia away from the relegation zone in LaLiga, a fight that has become familiar for Los Che in recent seasons.