Koeman will replace Quique Setien, who was sacked on Monday after last week’s 8-2 humiliation at the hands of Bayern Munich in the UEFA Champions League quarterfinals.
The 57-year-old relinquishes his position as manager of the Netherlands national team and returns to the Camp Nou, where he spent six years as a player and won four La Liga titles as well as the European Cup, scoring the only goal in the 1992 final against Sampdoria.
Barca have released an official statement on their website confirming the news, which reads: "FC Barcelona and Ronald Koeman have reached an agreement for the Dutchman to take over as first-team coach until 30 June 2022.
"The Blaugrana legend, hero of Wembley, the man who handed Barca their first-ever victory in the European Cup returns to Camp Nou.
"This time, however, he will do so as coach as the Dutchman brings more than 20 years of experience as a manager and eight trophies on his CV.
"Ronald Koeman comes to FC Barcelona after coaching in the Premier League, La Liga, the Dutch league, the Portuguese league and also on the international stage with the Netherlands."
“It was an honour to be the national coach of the Netherlands," Koeman said in his parting message to Dutch national team ahead of his new role.
"For the past two and a half years I have done everything I can to achieve successes with Oranje.
"I look back with pride on what we have achieved together in that period. The Dutch national team has a bright future, I am convinced of that.
"Everyone knows that Barcelona is my dream club. It feels very special to me to be able to become a coach there."
Having coached Valencia in the 2007/2008 season, Koeman will be taking charge of his second La Liga club.
