The Argentine returns as trainer of los Millonarios 10 years after his departure following the sacking of Matias Almeyda earlier in the week after a poor run of results
This will be Diaz's second spell as coach with the Argentine greats following his time with the club during the latter part of the 90s where he led them to five league titles, a Copa Libertadores triumph and winning the last ever Supercopa Sudamericana.
Considered one of the club's greatest ever coaches, Diaz is a popular choice amongst the fans having also been a River Plate player from 1978 to 1981 before returning in 1991 to help them win the Apertura where he was the leading goalscorer.
The appointment of Diaz comes just days after Matias Almeyda was relieved of his position following a poor run of results that saw River Plate pick up just one win in their last seven matches.
The official unveiling of Diaz, who has also been the coach of San Lorenza, Club America and Oxford United, as River's new boss is due to take place on Friday, with president Daniel Passarella having met and agreed terms with the 53-year-old.