"Today we begin the road to Brazil 2014. Football lives off the successes of efficiency but none of that counts if there is no joy. Claudio Borghi brings these factors together perfectly... and his game is fun, that's what Chile wants," Jadue told a news conference.
"Claudio's contract begins on Wednesday, March 9, but he starts working for Chile from now."
Borghi's contract is until the end of the South American World Cup qualifiers in late 2013. It will automatically be extended if Chile qualify for the finals.
Bielsa, who steered Chile to their first World Cup finals since 1998 last year and was popular with players, fans and media, quit this month over differences with the ANFP's new leadership.
Borghi's first match in charge will be a friendly away to Portugal in Leiria on March 26.
In his favour, Borghi knows many of Chile's present internationals having coached them at Colo Colo including goalkeeper and captain Claudio Bravo and striker Humberto Suazo. He too is well liked by Chileans.
"Bielsa's results were very good. But anyway, always after someone has done well or badly, another has to come along. We feel capable, we know the place... I hope to take advantage of what Marcelo Bielsa left," Borghi said.
On the field, Borghi's teams are less rigid tactically than Bielsa's as he gives his players more freedom of expression.
He was a popular choice with Boca fans when appointed last May but, always with his heart on his sleeve, was unable to cope with the huge media spotlight on Argentina's most popular club and, in particular, criticism of his three-man defence.
Borghi was also unlucky that Boca's brilliant playmaker Juan Roman Riquelme was unavailable for all but one of his matches with the team and he left after five wins and seven defeats in 14 matches.
