Carlos Alberto Parreira has been named as technical director. Scolari's first game in charge is scheduled to be a friendly away to England in February.
Scolari's international successes
Wins World Cup as Brazil manager with 2-0 win over Germany
Reaches Euro 2004 final as Portugal coach but loses 1-0 to Greece
Leads Portugal to fourth place in World Cup
Brazil have failed to make it past the quarter-finals of the last two World Cups but Scolari says he is not daunted by the task of preparing his team for a home World Cup.
"I'm not feeling under pressure, but very happy," he said. "When the FA president called me last Tuesday and confirmed that I was the chosen one, I thanked him a thousand times."
The president of the Brazilian Football Confederation (CBF), Jose Maria Marin said: "Our sole commitment is to seek out and offer the best for our football and it is in this vein that we have chosen these two great champions [Scolari and Parreira], respected not just in our country but worldwide."
Scolari's first spell in charge started in 2001, when Brazil were struggling in the South American qualifiers. He successfully led the team to Japan and South Korea and eventually to victory in the tournament.
Scolari's Brazil win World Cup in 2002
"I was under pressure the first time - when we were in danger of not going to the World Cup," he said.
"The players are those who always have pressure over them, I don't."
The Brazil Football Federation stated they were looking for "new methods and new planning" when they sacked Menezes last week, just two days after Brazil won the Superclasico de las Americas against Argentina.
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