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.

SSE Airtricity Premier Division Action Tonight
Mayo Makes One Change For Weekend's All-Ireland Game Against Kerry
Darren Purse Unveiled As New Manager Of Sligo Rovers
Friday's Sports Update
Conference League Action This Evening With Two League of Ireland Teams
Former Liverpool Boss Jurgen Klopp Expected To Be Announced As New Germany Manager
Thursday's Sports Update
Results From Wednesday's Minor Football League Fixtures