Magath's move also saw him reunite with Shandong captain Hao Junmin, who had a stint at Schalke when the German was in charge there.
Magath, who won two Bundesliga titles with Bayern Munich and one with Wolfsburg, is set to begin his stint in China with Sunday's league fixture against Hebei China Fortune.
(Reporting by Amlan Chakraborty in New Delhi; Editing by John O'Brien)