Former Sporting boss Peseiro joins Braga
The 52-year-old, who led Sporting Lisbon to the UEFA Cup final in 2005, had been in charge of Saudi Arabia until last year.
"Braga is now one of the four top Portuguese clubs," Peseiro said.
"I enjoy good football and it is essential to preserve the club's current dynamics, with our first objective being to reach the Champions League group phase."
Braga were beaten by Porto in the 2011 Europa League final and finished third in the Premier League to earn a spot in the qualification stage of the Champions League.
As well as his success with Sporting Lisbon, Peseiro is a former assistant coach at Real Madrid and has had stints at Rapid Bucharest and Panathinaikos since leaving Portugal in 2006.
Braga's previous coach Leonardo Jardim left the club last month and has joined Greek champions Olympiakos.