After training on Monday, Valverde met with club president Josep Maria Bartomeu.
The club made a widely publicized approach to former midfielder and club legend Xavi Hernandez - now in his first managerial position with Qatari side Al Sadd - but was rejected and reports suggest former Tottenham boss Mauricio Pochettino was being considered, although the Argentine has previously said he would never manage Barcelona given his ties to rival club Espanyol. Netherlands manager and former Barcelona star Ronald Koeman also has been a perennial contender for the Barcelona job.
Barça have held preliminary talks with another former player, Xavi Hernández, who is now with Qatari club Al-Sadd, but he has reportedly said he is not interested in moving to Catalonia at the moment. Qatari club Al-Sadd - where he now coaches - said the Spanish club was negotiating with the Spain great.
Barca sporting director Eric Abidal was also thrilled to have Setien on board. The Argentine manager used to play and coach for Barcelona's city rival, Espanyol.
Valverde was replaced by 61-year old former Real Betis coach Quique Setién, who is famous for staging an unexpected win against the Catalan giants at the Nou Camp. The first break for the experienced coach finally happened with Lugo, where he guided them to the Segunda Division and kept them there before departing for Las Palmas - who were in LaLiga - and leading them to survival.
Barcelona are top of La Liga on goal difference and have won four of the last five league titles.
He enjoyed a long playing career for Racing Santander, Atletico, Logrones and Levante.
It is no doubt that Xavi has immerged as the big favorite to be the next coach with the Catalans offering a two-year contract with an option to start immediately. We'd spoken with Valverde many times, too.
Last year Barcelona beat Liverpool 3-0 in the first leg of a semi-final on home soil, only to lose the return 4-0 at Anfield.
He wrote: "Ernesto Valverde lost ONLY 16 out of 145 games at Barcelona, he won two La Liga, one Copa del Rey and one Supercopa de Espana for them, but the Club still sacked him".
Valverde received support from Lionel Messi and other players in the squad recently. He took training for the first time on Tuesday and will be in the dugout for Sunday's league game against Granada at Camp Nou.
He joined Real Betis in 2017. The team is still in first place in La Liga and in the last 16 of the Champions League where Napoli awaits on February 25 and March 18.