Former Bayer Leverkusen boss Roger Schmidt will take charge of PSV from next season after signing a two-year deal.
PSV's interim head coach Ernest Faber will step aside at the end of the 2019-20 campaign to be replaced by German Schmidt, who has been out of work since being sacked by Chinese Super League side Beijing Guoan in July 2019.
Schmidt, who won the Chinese FA Cup with Beijing during two years with the club, had previously managed Leverkusen and Salzburg.
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He won the 2013-14 Austrian title while in charge of Salzburg before leading Leverkusen to back-to-back top-four finishes in the Bundesliga.
PSV director of football John de Jong said: "Roger Schmidt was always our first choice for the manager's job and we are delighted to announce that he is joining our club."
PSV is currently fourth in the Eredivisie table, seven points behind leader Ajax.
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