Gracia signed a two-year contract with Osasuna, who are currently bottom of the Spanish football league table after losing their first three games of the season, Xinhua reported.
Gracia will be officially presented to the press and fans Thursday.
As a coach, Gracia has worked in the Villarreal youth system before moving up to the B-team.
He then coached Cadiz and Almeria, who he led back to the Primera Liga last season, before leaving at the end of the campaign.
That means he has so far not coached in the Spanish top flight, although he has a good reputation for working with young players, something that will be important at his cash-strapped new club.
--IANS (Posted on 05-09-2013)