The process to appoint a new manager was led by Forest’s global head of football Edu Gaspar and global technical director George Syrianos.
Former Italy and Manchester City boss Roberto Mancini also held discussions with Forest about the post, while Fulham manager Marco Silva was also known to be admired by the club.
“A respected and experienced Premier League manager, Dyche brings the perfect blend of character, tactical acumen and proven achievement to guide the club through its next chapter,” said a Forest statement.
“As a former Forest youth player who lives locally, Dyche also has a deep understanding of the values and pride of Forest and its supporters.
“His appointment represents the best opportunity for a successful and competitive season across both domestic and European competitions.”
Dyche’s coaching staff will include Ian Woan and Steven Stone, who both played for Nottingham Forest.
