Zidane replaces Rafael Benitez, who was sacked on Monday after just seven months and 25 games in charge.
The Frenchman is loved at the Santiago Bernabeu thanks to his five stellar years to end his playing career in the Spanish capital, most memorably scoring a stunning winning goal in the 2002 Champions League final.
Yet, his coaching experience is limited to a season-and-a-half in charge of Madrid's feeder team Castilla where he failed to secure promotion from Spanish football's third tier last season.
Like Zidane, Guardiola was a club legend as a player who graduated from a season in charge of Barca's B team to become the most successful coach in the club's history.
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Moreover, unlike Benitez, Zidane is at least sure to have the respect of Madrid's star-studded dressing room, who constantly clashed with the former Liverpool and Chelsea manager.
Zidane doesn't just have the kudos of being a former Ballon d'Or winner, but he was Carlo Ancelotti's assistant as Madrid won their long-awaited 10th Champions League crown in 2014.
It will take more than heart for Zidane to arrest a
year-long slump that has seen Madrid burn through two Champions League winning coaches, see eternal rivals Barcelona win the treble and become embarrassed in numerous off-field scandals.
"A man that has been the best at a game we all love, taking over a club that myself and many more people love. Someone with drive, passion and also doesn't accept failure on any level."
Despite being thrown out of the Copa del Rey for fielding an ineligible player last month, there is still plenty of time for Madrid to turn their season around.
They trail La Liga leaders Atletico Madrid by just four points with over half the season to play and are strong favourites to see off Roma in the last 16 of the Champions League.
"As president it is an honour to have you at my side because I know for you the word impossible doesn't exist," he said after naming his 11th new coach in 12 years at the club.
Should Zidane's managerial stock slump as quickly as it has risen, then it may finally be Perez and not the coach who takes the fall.