Chris Hughton was appointed as manager of Birmingham City on Wednesday - just 10 days after Alex McLeish resigned to take charge of local rivals Aston Villa.
Birmingham were 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 holders Birmingham.
A statement on Birmingham's official website said the 52-year-old Hughton, a former Tottenham and Republic of Ireland defender, would take charge with "immediate effect".
Birmingham will hope for a repeat of Hughton's achievement in guiding Newcastle out of the Championship and into the Premier League two years ago.
Hughton has been out of football since being axed by Newcastle after a 3-1 defeat at West Brom in December.
He is the first manager to be appointed by Birmingham owner Carson Yeung since the Hong Kong based buisnessman took control of the club in the early part of the 2009/10 season.
Hughton spent 13 years as a player at Tottenham and then had spells as coach and assistant-manager at White Hart Lane between 1993 and 2007.
He was appointed first team coach at Newcastle in 2008 and was appointed manager in October 2009.
But, despite guiding them to promotion, Hughton was sacked 14 months later.