Burley was sacked by Ipswich earlier this season
George Burley has been appointed interim manager of Derby County following the suspension of John Gregory.
Gregory's assistant Ross McLaren and physio Stuart Walker have also now been suspended by the Pride Park Club pending the outcome of an inquiry into ''serious allegations".
Former coach Billy McEwan, who was sacked by Gregory, has returned to the club after winning an appeal against his dismissal.
Burley, who has also managed Ayr and Colchester, was sacked by Ipswich in October.
He had steered the Suffolk club to the upper reaches of the Premiership and the Uefa Cup only to take them back down to the First Division again.
Burley will find a family connection at Pride Park as his nephew Craig, the Scottish international, is on the playing staff.
"I am delighted to be involved with Derby County," Burley told the Rams' website.
"Derby is rich in football history and it is an honour to be asked to be part of the club. I am looking forward to the challenge ahead."
Derby chairman Lionel Pickering added: "George is highly
respected for his ability as a football manager and his integrity as an individual and is exactly the type of person Derby County needs at this juncture."
Gregory is still suspended by Derby
McEwan, who lost his job in February after working at Derby for nine years, expressed his pleasure at returning as first-team coach.
"My association with Derby goes back a long way and I am delighted this matter has been resolved to both the club's and my own satisfaction," he said.
"Throughout this situation my loyalty to Derby has never wavered.
"Anyone who knows me is well aware of my passion and commitment to this club, its players and supporters."