"Nottingham Forest can today confirm the appointment of Nuno Espirito Santo as first team head coach," said a club statement.
"Nuno joins the club on a two-and-a-half-year contract and will take charge of his first match on Saturday when Forest face Bournemouth at The City Ground."
The 49-year-old Portuguese coach succeeds Steve Cooper, sacked by Forest on Tuesday after a dismal run of one win in 13 Premier League games left the club just one place, and five points, above the relegation zone.
Nuno has been out of work since leaving Saudi Pro League club Al-Ittihad in November.
But he has now returned to English football following a two-year absence since his departure after an ill-fated four-month spell at Tottenham Hotspur which featured a mere 10 Premier League games.
Nuno also had four years in charge of Wolves, guiding the club to promotion from the Championship in his first season in charge.
Wolves enjoyed consecutive seventh-place finishes in the Premier League and a run to the Europa League quarter-finals under Nuno's leadership.
Cooper's exit from the City Ground came with Forest having lost five of their past six games.
The 44-year-old Welshman led Forest to promotion to the Premier League in 2022, ending a 23-year absence from the top flight for a club twice crowned champions of Europe under celebrated manager Brian Clough in 1979 and 1980.
Cooper had retained the support of Forest fans after taking them from the bottom of the Championship to Premier League survival last season.
But with Cooper's summer of heavy investment in new signings failing to deliver the required results, Forest's Greek owner Evangelos Marinakis finally lost patience with the former Swansea boss.
"Everyone at Nottingham Forest would like to thank Steve for his superb contribution to our football club. His achievement in guiding Forest back to the Premier League will undoubtedly remain an iconic moment in the club's history," Marinakis said Tuesday.
"We thank Steve for his dedication and commitment during his time with us, as well as the incredible connection he forged with our supporters and the city of Nottingham.
"Steve will always remain a friend of the club and will forever be welcome at The City Ground."
