He takes over from Sean Dyche, who was sacked two months ago.
Premier League winning captain Vincent Kompany's returning to England to manage Burnley.
The former Manchester City skipper will attempt to lead the club back into the top flight following their relegation to the Championship.
Kompany recently left his job as boss of Belgian side Anderlecht.
Burnley have been without a permanent manager since sacking Sean Dyche two months ago.

Monday Evening Sports Update
Kildare U16s Power to Leinster A Football Title
Kildare Minors Crowned Leinster B Camogie Champions
All Ireland SFC Draw
Mawdsley Powers Ireland to World Championships Qualification
Mainoo Fires Man United to Win Over Liverpool
Leinster Set for Champions Cup Clash with Bordeaux-Begles
Scottish Title Race Tightens as Celtic Move Level