Caparros, who managed the Spanish outfit between 2000 and 2005, has taken over the reins of the club after Vincenzo Montella was dismissed on Saturday.
And Caparros will take charge of Sevilla’s remaining four games for free because they do not require ‘expenses’.
Three of club’s last four matches are at home while their only away trip is to Real Betis, who are also based in Seville.
The 62-year-old, who has also managed the likes of Deportivo La Coruna, Granada and Levante, told sources: ‘I honestly did not think it was necessary for the club to pay me.
‘My contract is only for a month and the only matches we have remaining are to be played in Seville (three at home, one at city rivals Real Betis) so there are no expenses.’
And Sevilla president Jose Castro confirmed the deal in a statement on the club’s official website: ‘We spoke about wages, but Joaquin did not want anything on the table.
‘He wants to help the club, he is a Sevillista and he will see us through until the summer for free.’
Caparros will stay at Sevilla beyond the current season but in another staff role.
Montella, who masterminded Sevilla’s Champions League progression past Manchester United, was sacked a day after seeing his side fall to a 2-1 defeat by La Liga strugglers Levante.
Sevilla go into their final four league games of the campaign in eighth spot.