Hierro returned to the Royal Spanish Football Federation as sporting director on 27 November 2017. He was appointed as the manager of Spain on 13 June 2018 after the sacking of Julen Lopetegui two days before their first match at the World Cup, following the latter's decision to join Real Madrid after the tournament. Two days later, he led the team to a 3–3 group stage draw against Portugal; on 8 July, following a penalty shootout loss to hosts Russia in the round of 16, he stepped down from his post and also announced that he would not return to his role as sporting director.