The former Netherlands boss will return to Stamford Bridge for a second stint in charge of the Blues following the sacking of Jose Mourinho
Guus Hiddink has been appointed manager at Chelsea until the end of the season, the club have confirmed.
The defending Premier League champions parted company with Jose Mourinho on Thursday with the club 16th in the table and just one point clear of the relegation zone.
Chelsea have won just four of their 16 league fixtures so far this season and a 2-1 loss at leaders Leicester City on Monday proved the final straw.
The Dutchman will be present for Saturday's meeting with Sunderland but Steve Holland and Eddie Newton will take charge of first-team affairs.
"I am excited to return to Stamford Bridge. Chelsea is one of the biggest clubs in the world but is not where it should be at the moment. However, I am sure we can all turn this season around," Hiddink said in a statement.
"I am looking forward to working with the players and staff at this great club and especially renewing my wonderful relationship with the Chelsea fans."
Hiddink was previously appointed on an interim basis following the sacking of Luiz Felipe Scolari in 2008-09 and guided the club to FA Cup glory.
The 69-year-old has since coached Turkey, Anzhi and Netherlands.