Van Gaal, sacked by Bayern Munich in 2011, will take charge of Netherlands for the second time having previously been coach from 2000-02. The Dutch FA (KNVB) said in a statement that the 60-year-old had signed a two-year deal.
He will replace Bert van Marwijk who "stepped down" after the team lost all three group matches at Euro 2012 last month. Van Marwijk produced the best run of a Netherlands coach when he won his first 14 competitive matches in charge and led the side to the 2010 World Cup final where they lost to Spain.
In comparison, Van Gaal resigned after the Dutch failed to qualify for the 2002 World Cup, the only major tournament finals they have missed since 1988
Van Gaal's first match will be a friendly on August 15 against Belgium. The Dutch start their World Cup qualifying campaign at home to Turkey on September 7.
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