Rangnick will start working with Austria in late May ahead of a Nations League game against Croatia on June 3.

That is shortly after United's last scheduled game of the Premier League season against Crystal Palace on May 22.

"It is an honour for me to take up the position as head coach," Rangnick said in a statement, adding he looked forward to taking "a young, success-hungry team" to the European Championship.

Rangnick has been in interim control at Old Trafford since late November and will be replaced as manager by Erik ten Hag at the end of the season.

United's hopes of playing Champions League football next season suffered a blow on Thursday night, held at home to a 1-1 draw by third-placed Chelsea.

The Austrian FA said he has agreed to a two-year deal with an automatic two-year extension through the 2026 World Cup if Austria qualify for the 2024 European Championship.

The 63-year-old German replaces Franco Foda, who stepped down after Austria were eliminated in the World Cup playoff semi-finals by Wales.

Rangnick was a reported to contender to replace Joachim Loew as Germany boss after Euro 2020 but the job instead went to Hansi Flick.

He had made his name with Hoffenheim and RB Leipzig, and before arriving in Manchester had worked as sporting director for Lokomotiv Moscow.

Australian Associated Press