The New Jersey-born Matarazzo last coached German club Hoffenheim from February 2023 until November 2024. Before that he coached at Stuttgart from 2019-22.
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Matarazzo, 48, agreed to a contract through June 2027. He fills the post left vacant when Sociedad let Sergio Francisco go last weekend after a third consecutive loss in LaLiga.
Sociedad announced his hiring shortly after a 1-1 draw at bottom-side Levante left the Basque Country club just two points from the drop zone.
Matarazzo will inherit a club that was used to finishing near the top of LaLiga and earning European competition berths but began to struggle last season when Imanol Alguacil's long stint in charge came to an end. It has also had trouble replacing star midfielders Mikel Merino and Martín Zubimendi after their transfers to Arsenal.
Levante likewise announced it hired Portuguese coach Luís Castro after the draw with Sociedad.
Castro joins a Levante that has struggled in its return to the top flight. It is in last place at six points from safety with just two wins in 16 rounds.
The club fired Julián Calero, the coach who led it to promotion, last month after a run of four consecutive losses. Since then it has been led by caretaker coaches from inside the club.
The 45-year-old Castro was fired by French club Nantes last week with the eight-time French champion languishing in 17th place in the 18-team Ligue 1.
Castro won praise after leading second-tier Dunkerque to the French Cup's final four last season. The minnow led Paris Saint-Germain 2-0 in the semifinal before PSG rallied to win.
