The 46-year-old, who worked as youth coach and assistant to Guus Hiddink at the Philips Stadion between 2001 and 2006, returns to Holland after leaving FC Twente for an unsuccessful stint at German side Schalke last summer.

Rutten ironed out the final details of the agreement with the Dutch champions today before putting pen to paper on a three-year contract.

mfl

PSV have been without a permanent boss since Huub Stevens left the post at the start of the year.

Dwight Lodeweges was handed the reins until the end of the campaign while the club looked for someone to take charge next term.

Speculation mounted that that man could be Rutten when he was sacked by Schalke in March, with technical manager Adrie van Kraaij confirming earlier this month that he was in the running.

The appointment was confirmed at a press conference in Eindhoven this afternoon, and Rutten is delighted to be back.

"I really feel like starting here again," Rutten told PSV TV.

"After a few weeks the itch starts of course. This gives me a very special feeling, certainly, because I already have worked here for five years."

mfl

Rutten revealed he had the chance to return to PSV in 2007, but did not take up the opportunity as he was under contract in Enschede.

"I am a man of agreements," he said. "Back then I had a clear agreement with FC Twente. Now my contract with Schalke was dissolved and the way to PSV was therefore clear."

No appointments have been made for Rutten's backroom staff, with the new boss planning to take his time to get the right men alongside him.

"I will first take stock," he said. "Also for the technical staff I will take my time. I would like to work with strong people, so we will start thinking hard about that."