Guus Hiddink will replace Louis van Gaal as Netherlands head coach after the World Cup in Brazil.
The 67-year-old will be in charge until the end of Euro 2016 in France and then be replaced by current assistant coach Danny Blind.
Blind, 52, and former striker Ruud van Nistelrooy, 37, will act as Hiddink’s assistants until then.
In a statement, the Dutch football Federation (KNVB) said: “Guus Hiddink, Danny Blind and Ruud van Nistelrooy form the new technical staff of the Dutch team.
“They go to work after the 2014 World Cup in Brazil. The KNVB has a contract agreed with Hiddink that connects him from 1 August 2014 to the European Championship in 2016 in France as coach. Blind and Van Nistelrooy are appointed for the same period as an assistant coach.
“After Euro 2016, Blind will replace Hiddink as coach, extending his contract with the KNVB to the 2018 World Cup in Russia.”
Hiddink, a much-travelled and highly respected coach, previously managed Holland between 1994-98. He has also coached at international level, with South Korea, Australia, Russia and Turkey.
He was delighted to return to manage Holland.
“I am honoured to return as coach for the Dutch team,” he said. “With Danny Blind and Ruud van Nistelrooy we also have a solid team with a lot of football knowledge and experience.
“It is wonderful that I can oversee my own succession. In this way the football vision for the Dutch team in the long term can be guaranteed.”
KNVB director Bert van Oostveen added: “With Hiddink we get a coach with a wealth of international experience and successes. He has proven his ability as a trainer.
“We are also very pleased with the further development of the technical staff. Blind recently proved his worth at the KNVB. In the next two years he has a chance to grow.
“With Van Nistelrooy, we again add a former international football player to the staff. It goes without saying that we have a lot of faith in this coaching staff.”
Hiddink has also accumulated a wealth of experience at club level, managing, among others, PSV Eindhoven, Fenerbahce, Valencia, Real Madrid, Real Betis, Chelsea, and most recently, Russian side Anzhi Makhachkala, whom he left last summer.
Arguably, the highlight of Hiddink’s previous spell in charge of Holland came at France 98, when Denis Bergkamp scored one of the great World Cup goals in the quarter-final tie against Argentina.