CSKA Sofia name latest new coach
The 64-year-old, who led Bulgaria to the semi-finals of the 1994 World Cup, returned to CSKA earlier this month under the designation "supervisor" but the club confirmed he was the new head coach after their 1-0 win over Litex Lovech on Wednesday.
"Yes, I'm the new head coach from now on," Penev, who also won seven league titles with CSKA as a player and three more as coach, told reporters. "I'll remain at the post until the end of the season."
Penev, named Bulgaria's coach of the century, steered the national team to their first European championship finals in 1996.
CSKA began the season with former striker and crowd favourite Luboslav Penev - Dimitar's nephew - as coach, but he resigned in January after failing to guarantee he could deliver the league title.
Romanian coach Ioan Andone replaced him, only to quit two months later after guiding CSKA to only two wins in six matches. Andone's assistant Adalbert Zafirov then took over on an interim basis.
CSKA are third in the standings with 51 points from 26 matches. Litex are top on 58, followed by Lokomotiv Sofia on 52.