Hadzibegic, who briefly managed Bosnia in 1999 and will replace Bulgarian Ivaylo Petev (47) whose two-year contract was about to expire, will lead Bosnia's bid to qualify for the 2024 European Championship.
"We have the faith in the coach that he will find with all of us the right model to achieve historic result and get the team to the European championship," NFSBIH president Vico Zeljkovic told a news conference.
Hadzibegic begun his playing career at his hometown club Sarajevo and went on to play for Real Betis, Sochaux and Toulouse.
He coached Montenegro's national team and clubs including Sochaux, Real Betis, Troyes, Dijon, Bastia and Valenciennes.
"I thought that I will finish my career abroad," Hadzibegic said. "This invitation is a huge responsibility, pleasure and motivation."
Bosnia are in European Championship qualifying Group J along with Portugal, Iceland, Luxembourg, Slovakia and Liechtenstein.
