He will sign a deal until 2025, Dortmund said in a statement.

Terzic was installed as interim coach at Dortmund in December 2020 but by the time he had achieved a Champions League place and a German Cup triumph that season, Dortmund had already agreed to recruit Borussia Mönchengladbach’s Marco Rose. Terzic moved upstairs to become technical director.

Fast forward a year and Rose has been let go after an underwhelming campaign and Terzic was the obvious and cheap choice for the Bundesliga runners-up.

The German-Croatian, 39, takes on a side who are losing Erling Haaland to Manchester City but have already recruited Germany trio Niklas Süle, Nico Schlotterbeck and Karim Adeyemi. Cologne’s Salih Özcan is also arriving.