Fabio Capello signed a contract with the Russian Football Union (RFU) to become Russia's new coach on Thursday.
The 66-year-old Italian, who quit as England manager in February, replaces Dutchman Dick Advocaat, whose tenure ended with Russia's group-stage exit from Euro 2012.
The contract's financial details were not disclosed but local media reported Capello would earn up to 10 million euros a year.