The Englishman, who was recently in charge of MLS side D.C. United, has signed a three-and-a-half year contract to replace John Eustace
Eustace, in charge for just 15 months, was sacked due to a mellow finish last season, with the side finishing 17th out of 34 teams in the EFL Championship
Rooney mutually parted ways with the Major League Soccer side last week after it failed to qualify for MLS play-offs
Birmingham City is also Real Madrid’s newest star, Jude Bellingham’s boyhood club before he joined Borussia Dortmund in 2020 and Real Madrid this summer
Birmingham retired Bellingham’s kit number (22) when he left, as a gesture of respect for the talented youngster
However, Birmingham, the 2011 League Cup champion, is currently 6th in the EFL Championship table, far from the race for Premier League promotion
US-based Shelby Companies Limited took over Birmingham in July and soon Super Bowl champion Tom Brady became a minority owner in the club
Rooney has previously coached in the Championship, with Derby County, but left after the club was demoted due to points deduction
Joining Rooney on his Birmingham backroom staff are former England teammate Ashley Cole and Irish coach John O’Shea
“It’s a project that gives me a sense of purpose and I can’t wait to get started,” Rooney said
During his playing days he was a record goalscorer and being a Premier League legend, Rooney is expected to oversee a push for the top flight