Erwin Koeman sacked as Hungary boss
Koeman was appointed in May 2008 and after beating Greece 3-2 on his debut, the team failed to qualify for the 2010 World Cup finals. Winless in their last four matches, Koeman's last game in charge was a 6-1 defeat against Netherlands in June.
Egervari, 60, led Hungary to a bronze medal at the Under-20 World Cup in Egypt last year.
He said his task was to guide Hungary, which has not qualified for a major tournament since the 1986 Mexico World Cup, to Brazil for 2014.
"Our goal is to build a new team based on the heroes of the 2009 under-20 team," Egervari told reporters.