The Russia international hit the headlines with spectacular goals as the host nation progressed to the last eight before succumbing to eventual losing finalist Croatia.
Cheryshev finished joint-second in the FIFA 2018 World Cup Golden Boot with four goals, two behind England international Harry Kane, 24.
However, despite his improved standing with his country, Cheryshev was deemed surplus to requirements at the Yellow Submarine.
Head coach Javier Calleja allowed the midfielder to leave after concluding the Russian will not be a regular starter in the first team.
Villarreal hoped a permanent move would come through this summer. However, despite interest from Everton, no bids were received.
Cheryshev started his career at Real Madrid where he progressed from the academy through to the first XI. Unable to improve beyond being a squad player, he moved to the Estadio de la Cerámica in 2016.
Despite signing a five-year deal at the time, it seems the Russian is spreading his wings once more. Valencia confirmed the deal earlier today. No word yet on whether there is an option to buy at the end of the 2018-19 season.