Newcastle assistant Colin Calderwood has been unveiled as Hibernian's new manager on a three-year contract.
The Edinburgh club had been looking for a successor to John Hughes, who exited the club earlier this month.
Calderwood told Newcastle's website: "The opportunity to manage a top-flight side in my home country was hard for me to turn down.
"And that is a challenge I'm greatly looking forward to, but Newcastle will always be a special club to me."
Former Chelsea assistant Steve Clarke and Scotland Under-21 manager Billy Stark are also thought to have been considered for the job in Edinburgh.
In addition, Shamrock Rovers manager Michael O'Neill, a former Hibs player, and Bohemians' Pat Fenlon were linked with the post.
Calderwood was also interviewed for the job last time around but lost out on that occasion to Hughes.
The 45-year-old former Scotland defender managed Northampton Town and Nottingham Forest before joining Newcastle in January 2009.
And, as assistant manager at St James Park working with his Tottenham Hotspur colleague, Chris Hughton, Newcastle were promoted to the Premier League in England as champions.
"I have thoroughly enjoyed the time I've spent at Newcastle United," he said.
"It has been fantastic to work alongside a brilliant manager in Chris Hughton and with some great players at the club.
"Being part of last season's promotion to the Premier League is something I'm very proud of.
"However, I have always wanted to be a manager again in my own right and I am therefore delighted to be given this opportunity at another huge club, Hibernian.
"This is a well run, stable club with a wonderful tradition and terrific facilities. I'm looking forward to working with the squad and can't wait to get started as we prepare for Saturday's game at Aberdeen."
Stranraer-born Calderwood began his playing career with Mansfield Town before spells with Swindon Town, Tottenham, Aston Villa, Forest and Notts County.
As a manager, he led Northampton to promotion from League Two and Forest to the Championship.
Hibs chairman Rod Petrie said: "Colin has been in the dug-out as a manager in nearly 300 matches.
"He also has a wealth of experience as a player and as an assistant manager in the English Premier League.
"He is a winner, having won promotion with three different clubs. He is a leader with real drive and determination to succeed. This makes him an outstanding choice."
Hughes departed Hibs earlier this month after a poor start to the season and, after beating Kilmarnock on Saturday in their first game without their former manager, Calderwood inherits a side sitting eighth in the Scottish Premier League.
Hughton said: "Colin has been a big part of what this club has achieved since he's been here.
"He was an integral part of everything we achieved last season, which culminated in us lifting the Championship trophy.
"Aside from being a very good friend, Colin is somebody who I have the utmost respect for and I wish him all the best at Hibs."
The Edinburgh club had been looking for a successor to John Hughes, who exited the club earlier this month.
Calderwood told Newcastle's website: "The opportunity to manage a top-flight side in my home country was hard for me to turn down.
"And that is a challenge I'm greatly looking forward to, but Newcastle will always be a special club to me."
Former Chelsea assistant Steve Clarke and Scotland Under-21 manager Billy Stark are also thought to have been considered for the job in Edinburgh.
In addition, Shamrock Rovers manager Michael O'Neill, a former Hibs player, and Bohemians' Pat Fenlon were linked with the post.
Calderwood was also interviewed for the job last time around but lost out on that occasion to Hughes.
The 45-year-old former Scotland defender managed Northampton Town and Nottingham Forest before joining Newcastle in January 2009.
And, as assistant manager at St James Park working with his Tottenham Hotspur colleague, Chris Hughton, Newcastle were promoted to the Premier League in England as champions.
"I have thoroughly enjoyed the time I've spent at Newcastle United," he said.
"It has been fantastic to work alongside a brilliant manager in Chris Hughton and with some great players at the club.
"Being part of last season's promotion to the Premier League is something I'm very proud of.
"However, I have always wanted to be a manager again in my own right and I am therefore delighted to be given this opportunity at another huge club, Hibernian.
"This is a well run, stable club with a wonderful tradition and terrific facilities. I'm looking forward to working with the squad and can't wait to get started as we prepare for Saturday's game at Aberdeen."
Stranraer-born Calderwood began his playing career with Mansfield Town before spells with Swindon Town, Tottenham, Aston Villa, Forest and Notts County.
As a manager, he led Northampton to promotion from League Two and Forest to the Championship.
Hibs chairman Rod Petrie said: "Colin has been in the dug-out as a manager in nearly 300 matches.
"He also has a wealth of experience as a player and as an assistant manager in the English Premier League.
"He is a winner, having won promotion with three different clubs. He is a leader with real drive and determination to succeed. This makes him an outstanding choice."
Hughes departed Hibs earlier this month after a poor start to the season and, after beating Kilmarnock on Saturday in their first game without their former manager, Calderwood inherits a side sitting eighth in the Scottish Premier League.
Hughton said: "Colin has been a big part of what this club has achieved since he's been here.
"He was an integral part of everything we achieved last season, which culminated in us lifting the Championship trophy.
"Aside from being a very good friend, Colin is somebody who I have the utmost respect for and I wish him all the best at Hibs."
