Diario AS reports that Arrasate is the favourite for the Vallecas post, representing a deliberate shift in profile from the recent trend of younger coaches at the Madrid club. Both Andoni Iraola and Perez arrived with limited top-level experience. Arrasate, by contrast, is one of the most established coaches in Spanish football.
The 47-year-old managed Real Sociedad briefly in 2013-14 before a three-year spell at Numancia in the second division.
His defining work came at Osasuna, where he spent six years from 2018 to 2024, transforming the Navarran club from a Segunda side into a consistent La Liga presence, reaching a Copa del Rey final for the first time in 18 years and guiding them to the Conference League. He was dismissed by Mallorca after a difficult start to 2024-25.
Rayo finished eighth in La Liga this past season and have no European commitments next campaign, allowing the new manager to focus entirely on domestic competition. The expectation from the club's hierarchy is that a top-half finish should again be achievable.