The former Netherlands international previously coached his country to the 2010 World Cup final in South Africa, only to lose out to Spain 1-0 after extra time.
However, the ex-Borussia Dortmund coach - who also led Saudi Arabia through a successful 2018 World Cup qualifying campaign - will get another shot at world glory with Australia at this year's Russia finals after being named successor to Ange Postecoglou, who stepped down in November for personal reasons.
"This is a great result for Australian football, Bert van Marwijk is world class," Football Federation Australia chief Stephen Lowy said in a statement.
"He took the Netherlands to the World Cup final in 2010, he led the Saudi Arabian team to qualify directly for this year's finals and most importantly, he knows a lot about our team and how they play because he studied them closely as an opposition manager in the same group.
"These experiences make him a compelling choice."