Asier Del Horno has returned to first club Athletic Bilbao on loan from Valencia.
The full-back will spend the season at Bilbao, with the option of a permanent move next summer.
Bilbao have confirmed a deal has been agreed to sign Del Horno next May for 3million euros (£2million), plus a further 2million euros (£1.35m) depending upon appearances.
Del Horno only joined Valencia last summer on a five-year contract from Chelsea, but his season was ruined by injury.
Valencia coach Quique Sanchez Flores had admitted the Spain international had no long-term future at the Mestalla during the close-season.
The defender's situation has now been resolved before Friday's transfer deadline and he could figure in the weekend's Primera Liga game against Barcelona.
Bilbao have also confirmed they will pick up 60 per cent of Del Horno's salary, although he will not be allowed to play in the two league meetings with Valencia.