"There is a very strong group of players and with one or two additions we can expect to drastically improve on the 11th place finish secured last season."
Magilton will be the Flavio Briatore-led board's fifth manager since they took over in August 2007 (with two caretakers: Mick Harford and Gareth Ainsworth) and QPR's seventh in three-and-a-half years.
Under Briatore, John Gregory was sacked, Luigi De Canio left for personal reasons, Iain Dowie was sacked and Paulo Sousa had his contract terminated in April.
Rangers chairman Briatore said: "We had an incredibly high number of applicants, but Jim was the stand-out candidate for the role.
"We (the board) sat down with him on four separate occasions to discuss our goals and ambitions and he has really impressed myself, co-owners Bernie Ecclestone and Lakshmi Mittal and vice-chairman Amit Bhatia with his knowledge, understanding and passion for football."
Magilton's assistant manager is expected to be appointed in the next few weeks.
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