Juergen Klinsmann will take over as coach of Bayern Munich from next season, the Bundesliga club announced on Friday.
"Former Germany coach will take over the running of the club from July 1," Bayern said in a statement on their web site (www.fcb.de).
Klinsmann guided the German national team to third place at the 2006 World Cup before resigning immediately after the tournament. He has not held a coaching position since.
Bayern's current coach Ottmar Hitzfeld had already announced his decision to step down at the end of the season.
Klinsmann, 43, is well known to Bayern fans from his playing days. During a hugely successful career, Klinsmann played for Bayern from 1995 to 1997 and helped the team win the UEFA Cup and the German league title during his two years there.
Klinsmann, who lives in California, won widespread praise in Germany and abroad for the way he turned an under-performing Germany team into real candidates for the World Cup.
Bayern clearly feel they need the Klinsmann treatment after an expensive rebuilding job last season brought improved results but failed to win over all the fans.
After spending close to 70 million euros on new players, including France playmaker Franck Ribery and Italian striker Luca Toni, they started the current season well only for their form to dip.
They finished the first half of the season in first place but only lead Werder Bremen on goal difference.
Bayern said there would be a news conference with details on the appointment at 1500 GMT.