López started coaching in the early 1990s, with Atlético's reserves. After one season apiece in amateur football, also in the Madrid area, he took charge of the Bolivia national team, first as an assistant to Xabier Azkargorta, and eventually appeared with it them as head coach at two Copa América tournaments. He then returned to club action with Club Bolívar, followed by a spell in his homeland with UE Lleida, in the second division – whilst at the Catalan side, he briefly accumulated with his work as the national coach of the South American country, which he left for good in 1997 to sign with Sporting de Gijón of the Spanish second tier, being dismissed shortly after his arrival. Three years after his last job, with Club Bolívar, López was hired by Valencia CF as assistant to Rafael Benítez. However, after the sacking of Italian Claudio Ranieri, he managed the first team for 14 games as the Che, the previous league champions, eventually finished seventh. Additionally, he worked at the Mestalla Stadium as youth system coordinator. López became CD Tenerife's second head coach of the following campaign in November 2005, being fired himself after only six second level matches. Two years later, he joined Hristo Stoichkov's staff at RC Celta de Vigo in the same tier. With the Galicians constantly battling relegation until the last month of competition, he was named interim coach for the final three months as the team eventually stayed afloat; he was the third manager for the club in approximately one year, after replacing Juan Ramón López Caro. In 2010–11 López, who was assistant to Stoichkov at Mamelodi Sundowns F.C. of the South African Premier Division, took over the reins of the senior team. They made their best-ever start to a season and topped the standings at the end of the first round, eventually staying in contention for the league title until the second last match; he resigned in February citing personal reasons, and went back to Spain. In January 2012, López was appointed director of the Target Football Academy in Bangkok, Thailand. On 13 July he signed for South African club Bidvest Wits FC, agreeing to a two-year contract but leaving on 4 January of the following year. In August2014, after a short spell in Atlético Madrid's youth system, López was named coach of ATK in the Indian Super League. On 25 October he was given a four-match suspension and fined for his involvement in a spat with FC Goa's Robert Pires, which was reduced to two upon appeal. After a dip in form from midway through the season, López led his team to the semi-finals by drawing with Goa, meeting the same opponent once again and defeating them on penalties. In the decisive match, against Kerala Blasters FC, he benched marquee playerLuis García and also-compatriot Jofre, for which he was praised by critics, and the side won thanks to a goal by Mohammed Rafique in extra time. On 25 April 2016, López was appointed at fellow league club FC Pune City. On 16 September 2017, after a run-in with the board of directors, he left his position. In May 2019, López returned to ATK. On 14 March 2020, in a final played behind closed doors, he won the national championship against Chennaiyin FC to become the first manager to achieve the feat twice with the same team.
