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Valencia
On 31 October 2007, Koeman agreed to be the new coach of Valencia after the sacking of Quique Sánchez Flores, starting on 5 November 2007. With Valencia, he won the 2007–08 Copa del Rey, a tournament he previously won as a player with Barcelona. This was Valencia's first Copa del Rey since 1999. The remainder of his tenure at Valencia would prove disappointing: the team would slump to 15th in the league, only two points above the relegation zone, as well as finishing bottom of their Champions League group. A 5–1 defeat by Athletic Bilbao would prove the final straw for Koeman's time with Valencia. He was sacked the following day, on 21 April 2008.
AZ
Koeman was appointed manager of AZ on 18 May 2009, after Louis van Gaal, who won the 2008–09 Eredivisie with AZ, joined Bayern Munich. On 5 December 2009, AZ announced that Koeman no longer was in charge of AZ, after losing 7 of the first 16 games in the Dutch competition.
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