Habas left Sundowns under a cloud in February 2011.
He will be assisted by Miguel Gonzalez Martinez.
"We are pleased to have secured the services of a highly experienced coach like Antonio Lopez," Wits CEO Jose Ferreira tells the club's official website.
"He has a vast knowledge of the game and has worked in some of the most competitive professional environments in the world such as Spanish football and coached in two Copa Americas.
"His appointment fits in perfectly with this club’s vision and strategy to become a competitive and successful team in the Premier Soccer League, while his extensive experience at development level will also ensure that our club continues to be at forefront of the development of some of the finest young talent in this country."
Habas says: "Bidvest Wits is a club with a rich and proud history and I am very pleased to have been asked to be part of this ambitious and challenging project."
Habas and Martinez have signed two-year contracts, subject to the granting of work permits.
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