Halilhodzic heads to Dinamo Zagreb
Halilhodzic, 57, succeeds Velimir Zajec, who was fired last week after only three months at the helm following a string of meagre results at the beginning of the new season.
During his coaching career Halilhodzic, a former ex-Yugoslav international, managed a number of teams including Paris St Germain. He was sacked earlier this year as coach of Ivory Coast following a quarter-final exit in the African Nations Cup.
"I am happy to be in Dinamo. I was following Dinamo's path in the last few seasons and I want to make Dinamo play in the Champions League," Halilhodzic said after signing the contract.
Dinamo won five Croatian titles in a row but the management was frustrated by inability of the team to reach the Champions League group stage or leave any noticeable mark on the European level in recent years.
Dinamo face Hungary's Gyor in the first leg of the Europa League play-off on Thursday.
In the Croatian championship Dinamo Zagreb are sixth, three points behind leaders and rivals Hajduk Split.