Chris Hughton was appointed manager of Birmingham City on Wednesday - just 10 days after Alex McLeish resigned to take charge of local rival Aston Villa.
Birmingham was relegated from the English Premier League last season while Villa, whose manager Gerard Houllier resigned on health grounds, stayed in the top flight.
Hughton, widely praised for his spell as Newcastle boss, saw off competition from the likes of former West Brom manager Roberto di Matteo in the race to take charge of League Cup holder Birmingham.
A statement on Birmingham's official website said the 52-year-old Hughton, a former Tottenham Hotspur and Republic of Ireland defender, would take charge with "immediate effect".
Hughton said: "I am absolutely delighted. To be joining a club of the stature of Birmingham City, with the history it has, is a pleasure. I'm really looking forward to getting to work."