Mixu Paatelainen is the new Hibernian manager after the Edinburgh club agreed compensation with TPS Turku.
Paatelainen enjoyed two spells at Hibs as a player
The Finn returns from his homeland for a third spell at Easter Road, having had two stints as a player with Hibs.
"I am very happy to take up this opportunity," Paatelainen, 40, told the club website. "Everyone knows of my great affection for this club.
"I believe my desire to see exciting, attacking and intelligent football fits well with the club's philosophy."
Hibs were searching for a new boss after John Collins resigned last month, citing frustration at the lack of funds available to buy players.
And Paatelainen has beaten off competition from former Preston manager Paul Simpson, ex-Scotland U21 coach Rainer Bonhof and Tommy Craig, who was assistant to Collins.
"I will bring energy, hard-work and leadership to the squad," added the man who won 70 caps for Finland.
"I am also committed to working with players, as individuals and groups, to help them to improve.
"If I can help one player improve, the team is better. If I can help all players improve, we are much better."
Paatelainen played as a striker at Hibs from 1998-2001 and from 2002-2003, having left for a season with French club Strasbourg.
A powerful forward in his day, Paatelainen also turned out for Dundee United, Aberdeen, Wolves, Bolton and St Johnstone.
He began coaching at youth level during his second spell at Hibs and moved on to first-team duties with St Johnstone and St Mirren.
His first taste of management came with Cowdenbeath in August 2005 and he went on to win the Division Three title.
In October 2006 he resigned his post at Central Park to take over at TPS Turku and steered the Finnish side to a third place finish last season.
Chairman Rod Petrie said: "We are delighted Mixu has agreed to take up the challenge and opportunity of managing Hibernian.
"We are convinced that he was the strongest candidate, and he impressed us a great deal during his interview.
"He has a clear vision of the type of football he wants to play, has strong ideas on man-management, and demonstrates excellent leadership qualities.
"I am sure he will further enhance his growing reputation."