The former Tottenham boss, 55, replaces Mark Hughes who resigned last Thursday after one season at the helm. Jol has agreed an initial two-year deal at Craven Cottage with the option of a further 12 months. He said: "I am very happy to join Fulham Football Club, a wonderful traditional club.
"It is a club with good, solid foundations and a great fan base.
"I am looking forward to being part of the Fulham family and thank the chairman for the trust he's shown in me."
The Dutchman, who was sacked by Spurs in 2007, was linked with the Fulham role last year. But Ajax refused to release him from his post as head coach at the Amsterdam ArenA. He has been out of work since quitting that job last December. Fulham owner Mohammed Al Fayed added: "I would like to welcome Martin Jol to Fulham.
"He understands my vision for the club, and believes in what we are striving to achieve here.
"I know that he will dedicate himself to helping us move forward, and is with us for the long term, to help us build and progress.
"We have enjoyed three incredibly successful years, and my hopes and dreams for this club are for that journey to continue.
"I know that with his wealth of experience and success, Martin is the right man to help us do this."