The 61-year-old German succeeds Dutchman Pim Verbeek who left the position at the end of the Socceroos' involvement in the FIFA World Cup in South Africa.
The announcement will be made by Lowy via a video conference from Ljubljana, where Australia will face Slovenia in a friendly international on Thursday morning (AEST).
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Osieck will attend the match and will take up the reins at its conclusion, ahead of the September internationals against Switzerland and Poland.
Osieck is a former coach of Canada, winning the 2001 CONCACAF Gold Cup during his tenure, has experience coaching in the Bundesliga, J-League, was as an assistant to Franz Beckenbauer when Germany won the 1990 World Cup and has been involved with the FIFA Technical Study Group (TSG) since 2004.
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