Veh, who steered VfB Stuttgart to the 2007 Bundesliga title but was sacked by VfL Wolfsburg in January, will be officially presented on Tuesday.
"The board of Hamburg SV and the 49-year-old have agreed on a contract until June 30, 2012," the club said on their website.
Hamburg missed out on a European spot, finishing seventh in the Bundesliga, after collapsing in the second part of the season under coach Bruno Labbadia.
He was fired in late April, with assistant coach Ricardo Moniz staying on as interim coach until the end of the season.
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