Bournemouth have appointed Andoni Iraola as their manager on a two-year contract after sacking Gary O’Neil. The Spaniard was free to take charge after leaving Rayo Vallecano at the end of the season.

O’Neil was dismissed despite steering Bournemouth to Premier League safety after Scott Parker’s departure. The decision has caused surprise behind the scenes, with O’Neil understood to have been informed on Monday morning that the club wanted to adopt a different style of play to accelerate their progress.

Leeds failed in an approach to land Iraola, a 40-year-old former Athletic Bilbao midfielder, in February and he was on Bournemouth’s shortlist when Parker was sacked last August but was not willing to move mid-season. Iraola, who began his coaching career in Cyprus with AEK Larnaca, had three seasons with Rayo, winning promotion to La Liga and then finishing 12th and 11th.

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Bournemouth’s American owner, Bill Foley, concluded the club could not achieve his ambitions with O’Neil at the helm. Foley said last week after his ice hockey team, the Vegas Golden Knights, had won the Stanley Cup that he wanted modest improvements at Bournemouth after a 15th-placed finish.

Foley said of Iraola: “He was highly sought after by other clubs across the continent, and his style of play has been an important factor in making this decision. His achievements in Spain have certainly been very impressive, and we’re confident that he is the right man to lead our next chapter.”

O’Neil had two years on his contract after an extension was automatically triggered by avoiding relegation. He was appointed as manager, initially in a caretaker capacity, with the club bottom of the league after a 9-0 defeat at Liverpool.

Foley said: “Gary’s achievement last season is one I will always be grateful for. This has been a difficult decision, but it has been made with great consideration to best position ourselves ahead of the coming season.

“As a club, we have put plans in place for long-term success with improvements being made to infrastructure, most notably the development of a new state-of-the-art training facility and the ongoing discussions around upgrades to our stadium. We have also identified a number of significant targets in the transfer market this summer and believe this change in direction will provide us with the best platform from which to build.

“Gary will go on to have a long career as a head coach or manager, but we feel that, at this moment in time, a change is in the best interests of this football club. I would like to place on record my thanks to Gary and wish him all the best for the future.”

Foley, the 78-year-old who bought Bournemouth from Maxim Demin in December, wants to build a new stadium and the new training ground is due for completion in autumn of next year. In January Foley acquired a stake in the Ligue 1 club Lorient, whom Bournemouth are set to play in pre-season.