Galatasaray on Monday finalised the appointment of Roberto Mancini as their new coach on a three-year deal to replace the sacked Fatih Terim.
The Turkish giants confirmed the news in a statement to the Istanbul stock exchange, saying that he will pocket €3.5m for this season plus an additional €4.5m for each of the next two campaigns.
The Italian, who left Manchester City in the summer, will also earn a €300,000 bonus if the club win the Turkish title and reach the UEFA Champions League quarter-finals.
Mancini, 48, arrived in Istanbul on Sunday and met with club officials, who were seeking a replacement for Terim after his departure last week. Mancini was sacked as manager of City in May - a year to the day after leading the club to the English Premier League title.
His time at City saw the club win a first major trophy in 35 years with the 2011 FA Cup, while the 2011/12 Premier League title was their first top-flight crown since 1968.
Defending Turkish champions Galatasaray have endured a miserable start to the season despite boasting the talents of former Chelsea star Didier Drogba.
They lie eight points behind leaders and bitter rivals Fenerbahce after winning just one of their first five league games and also suffered a 6-1 defeat at home to Real Madrid in their opening UEFA Champions League group match.