Fabio Capello signed a two-year contract with the Russian Football Union (RFU) to become Russia's new manager.
The 66-year-old Italian, who quit as England manager in February, replaces Dutchman Dick Advocaat, whose tenure ended with Russia's group-stage exit from Euro 2012.
"I'm very proud to be the coach of the Russian national team. Russia have great potential. I will live and work in Moscow," Capello told a news conference.
The contract's financial details were not disclosed but local media reported Capello would earn up to €10million a year.