The 21-year-old Spaniard, who paid the release fee to former club Malaga, returns to Villarreal, where he started his career, reports Efe news agency.
After one season at Villarreal, Fornals joined Malaga in 2015, where he played 50 matches and scored seven goals.
He played one match with Spain's U-21 squad and has made one appearance with the national team.
Villarreal finished fifth in La Liga last season with 67 points, 26 points behind champions Real Madrid.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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