The 62-year-old is currently managing the Netherlands football team and will be travelling with the squad to Brazil for the World Cup.
Van Gaal has managed a number of clubs in Europe including Ajax, Barcelona and Bayern Munich. Apart from winning domestoc League titles, he has also won the Champions League once with Ajax.
Interim manager Ryan Giggs will be appointed as the assistant manager to Van Gaal.
Manchester United CEO Ed Woodward said, In Louis van Gaal, we have secured the services of one of the outstanding managers in the game today. He has achieved many things in his career to date and Old Trafford provides him with a fitting stage on which to write new chapters in the Manchester United story.
Meanwhile, Frans Hoek and Marcel Bout will join as assistant coaches.
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