(CNN) -- PSV Eindhoven have unveiled Fred Rutten as their new coach on a three-year contract -- the Dutch club have confirmed on their official Web site -- replacing caretaker manager Dwight Lodeweges.
Rutten is back at PSV Eindhoven following his recent dismissal as Schalke coach.
The 46-year-old, who was sacked by Bundesliga side Schalke last month, returns to PSV where he held several positions from 2001 to 2006.
"It's a special feeling," Rutten told PSV Media after his appointment was confirmed at a press conference on Friday.
"After a few weeks of inactivity, I feel I'm ready for a new challenge. "It's special to be back after working here already for five seasons."
Rutten lost his job at Schalke following two successful seasons with Dutch side FC Twente, leading them to the UEFA Champions League qualifying round and being named named Dutch Coach of the Year.
Previously to that, Rutten was head of the PSV Academy for one season and acted as assistant to Guus Hiddink from 2002 to 2006.
Together with Hiddink, he led the club to great success, guiding them to a place in the UEFA Champions League semifinals.
Lodeweges took temporary charge of PSV in January after Huub Stevens stepped down from his position.