Former Chelsea and Tottenham boss Andre Villas-Boas is set to earn a reported £11m a year after taking over Chinese Super League team Shanghai SIPG.
He replaces former England boss Sven-Goran Eriksson, who left the club on Thursday after two years in charge.
Shanghai finished second and third in the league under the 68-year-old Swede.
"Andre Villas-Boas is the leading young manager in European football, with a huge amount of passion and coaching experience," a Shanghai statement said.
"We are convinced his arrival will enrich the tactical nous of the team, unearth the potential of our young talents and guide our club to scale new heights."
Portuguese Villas-Boas, 39, had been without a job since leaving Russian side Zenit St Petersburg at the end of last season.