It is a second spell in charge for Van Gaal. He succeeds Bert van Marwijk, who quit after the team’s terrible performance at Euro 2012.
Van Gaal is a former Ajax, Barcelona and Bayern Munich boss but failed to take the Dutch to the 2002 World Cup the first time he was in charge.
He said: “It’s the challenge I have been waiting for.”
The Royal Dutch FA said the 60-year-old has signed a contract taking him up to the 2014 World Cup.
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