Corberan spent three years at Leeds United as their Under-23 coach and a member of Marcelo Bielsa's backroom staff, before becoming Huddersfield Town manager in 2020.
The 41-year-old, who has since coached Olympiacos and West Brom, also previously played for Valencia's youth team.
"Carlos Corberan becomes the new Valencia CF coach until 2027," Valencia said in a statement on Tuesday.
"The club has informed West Bromwich Albion FC of the execution of the exit option stipulated in his contract to leave the English club."
Corberan replaces Ruben Baraja, who was sacked on Monday with Valencia second from bottom in the standings on 12 points with only two wins in 17 league games and four points from the safety zone.
Valencia, who have a match in hand, next play second-placed Real Madrid at home on January 3rd, a rescheduled game after the original fixture was postponed due to flooding last month.