Henning Berg was currently manager of Videoton FC in Hungary.
Berg was previously manager of Legia Warsaw, and prior to that in charge of Blackburn Rovers in the Championship.
The appointment resulted in Berg returning to Rovers for a third time, having previously enjoyed two successful spells as a player.
The former Norway international, who is one of only three players to reach 100 caps for his country, became Rovers' first foreign manager.
After starting his playing career in his native Norway with Valerenga and Lillestrom, Henning first arrived at Rovers in January 1993 and helped the club secure the Premiership title two years later.
His consistent defensive displays at Ewood Park earned Henning a big-money move to Manchester United, where he won the ‘Treble' in 1999. In doing so, he became the first player to win the Premier League with two different clubs.
He returned to Rovers in September 2000, initially on loan, and played a pivotal role as Rovers won promotion back to the top flight that season and then lifted the Worthington Cup as captain a year later.
He left Rovers in August 2003, having made almost 300 appearances for the club, and spent a season at Rangers, before hanging up his boots.
Henning returned to Norway, where he took his first steps into management. In April 2005, he was named manager of Lyn, where he enjoyed a three year spell at the Oslo-based club before taking over the reins at Lillestrom for three seasons, the club he had played for before joining Rovers.