Ivan Cleary has returned to Penrith having signed a five-year deal to become the Panthers' head coach once more.

Cleary, 47, was in charge of the Panthers from 2012 to 2015, but had been at the helm of the Wests Tigers the past two seasons.

A day after he was released from the final two years of his contract by the Tigers, who appointed Michael Maguire as their coach, it was confirmed Cleary was returning to Penrith.

"I am very fond of Wests Tigers and all its people. I enjoyed my time there and it is a club heading in the right direction," he said in a statement on Monday.

"I would like to thank [Tigers CEO] Justin Pascoe and [chair] Marina Go for their professionalism throughout.

"I am honoured to be back as head coach of Panthers and very much look forward to being part of the future journey.

"Personally I had a feeling of unfinished business with a club and a community that my family and I enjoy a strong connection with, from grassroots through to NRL players, staff and management.

"We have raised our family in the community for a number of years and are proud to call it home."

The move will see Cleary coach his son Nathan at the Panthers next year.

Cameron Ciraldo and Peter Wallace were named as Cleary's assistant coaches.