The 36-year-old World Cup winner, who was sacked by Swiss club FC Sion and Italian Serie B side Palermo last year, has agreed to join the Cretan outfit for the 2014/15 campaign.
“OFI announces the new coach of the team for next season will be Gennaro Gattuso,” the club said in a statement on Thursday.
Gattuso, who won 73 caps and helped Italy lift the World Cup in 2006, follows Portuguese Ricardo Sa Pinto after he led the unfancied Greek team to a sixth place finish last term.
Gattuso won every major domestic trophy, and lifted the Champions League twice, in more than 300 appearances for the Rossoneri before retiring at the end of the 2012/13 season.
However, he has struggled in his first attempts at managing, with his last job at Palermo ending after three months following two wins and a draw in their first six league games.
(Editing by Ken Ferris)
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