The 55-year-old Dutchman replaces Mark Hughes who stood down as Craven Cottage boss last week after finalising terms of his deal - believed to be worth ?1.5million-a-year plus bonuses - in the early hours of Tuesday morning.
A club statement confirmed this morning: 'Martin joins Fulham on an initial two year contract with the Club having an option to extend for a further year.
New direction: Fulham have appointed Martin Jol as their new manager
'He will arrive at our Motspur Park training ground in advance of the player's return to training later this month.
Jol, who was sacked at White Hart Lane in 2007 and his last job in management waswith Ajax before he quit the Dutch giants last December, revealed he could not wait to return to the Premier League.
Old pals' act: Hughton (left) and Jol talk tactics in their Tottenham days
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.'
Ageing squad: Fulham have the likes of Damien Duff (left) and Danny Murphy (centre) on their books
New team: Mohamed Al Fayed will attempt to reunite Jol with Hughton at Craven Cottage
Fulham want former Newcastle boss Chris Hughton to rekindle his old partnership with Jol and become part of the club's new management team.
Hughton spent three years as Jol's assistant at Tottenham and the club are keen for the pair to spearhead next season's Barclays Premier League campaign.
Sportsmail understandsthat Fulham chief executive Alistair Mackintosh identified Jol and Hughton as the dream ticket when it became clear Mark Hughes was ready to quit. Jol was contacted, via intermediaries, to gauge his interest inreplacing Hughes.
Fulham owner Mohamed Al Fayed is likely to give him a healthy budget in an attempt to seal his appointment.
The Egyptian businessman was ready to back Hughes to the tune of ?10m to sign Espanyol striker Pablo Daniel Osvaldo this summer.
Since Jol was unattached, Fulham did not need to fork out a hefty compensation fee to prise him away from another club which will count in his favour for the transfer budget.
Hughton has been out of work since his sacking by Newcastle in December and is looking for a route back into the game.
But whether he would be open to becoming a No 2 again remains to be seen.
The former Republic of Ireland defender enjoyed great success at St James' Park, leading Newcastle backinto the Premier League after their shock relegation, but was sacked byowner Mike Ashley in favour of Alan Pardew.
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?Explore more:People: Mike Ashley, Chris Hughton, Mark Hughes, Alistair Mackintosh, Mohamed Al Fayed, Martin Jol Places: Newcastle, Republic of Ireland Organisations: Fulham Football Club
Source: Daily Mail
Source: Daily Mail