McLaren joined FC Twente in June 2008 after being sacked by England in 2007
Former England boss Steve McClaren has signed a two-year deal as manager of German side Wolfsburg.
McClaren had been in charge at Dutch side FC Twente, who he led to a first league title in their 45-year history.
The 49-year-old was sacked as England manager in 2007 after failing to qualify for Euro 2008.
But the former Middlesbrough boss rebuilt his career over two years in the Netherlands and will now take charge of the 2009 German champions.
"I have had two fantastic years at FC Twente, but made a promise to my wife and children [who remained in England] that I would not spend more than two years living away from them," said McClaren, who becomes the first Englishman to manage a Bundesliga club.
Wolfsburg were knocked out of the Europa League in the quarter-final stage this season after a 3-1 aggregate defeat by Fulham.
And the German side, who were deposed as champions by Bayern Munich, finished eighth in the Bundesliga.
McClaren started his managerial career at Middlesbrough in 2001 after serving as assistant to Jim Smith at Derby and then Sir Alex Ferguson at Manchester United, where he was part of the club's treble in 1999.
Under McClaren, Middlesbrough won the Carling Cup in 2004, recorded their highest Premier League finish of seventh and reached the 2006 Uefa Cup final.
The Yorkshireman's last game in charge of Boro was a 4-0 defeat by Sevilla in Eindhoven in the Uefa Cup final before the Football Association appointed him as Sven-Goran Eriksson's successor in August 2006.
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