Van Gaal succeeds Bert van Marwijk, who quit after a disappointing early exit at Euro 2012. He signed a contract until the 2014 World Cup and will start his work on August 1, with his first match being a friendly against Belgium 15 days later. Former Ajax and Netherlands player Danny Blind will be his assistant.

The 60-year-old Van Gaal was already coach of the Dutch national team in 2000 and 2001. He decided to quit after he failed to lead "Oranje" to the 2002 World Cup.

The most recent job of Van Gaal was at Bayern Munich. He won the German double and reached the Champions League final in 2010, but in April 2011 he was fired after a series of bad results. Van Gaal also worked as coach of AZ, Ajax and FC Barcelona.

"I am pleased that the KNVB has approached me," Van Gaal reacted in a KNVB press release. "This is the challenge that I was waiting for."