Manuel Baum has been handed the reins at Augsburg after a two-game spell as caretaker coach following the departure of Dirk Schuster.
Baum, who was previously a youth coach and has signed a long-term contract with the Bundesliga club, took four points from his two games in temporary charge.
The win over Borussia Monchengladbach and draw with Borussia Dortmund helped move Augsburg away from the relegation zone
"I am delighted in the trust shown in me by the FCA officials," said the 37-year-old.
"The work with the team before the winter break was very intense, but I enjoyed it a lot, and am looking forward to continuing this work as head coach."
Sporting director Stefan Reuter added: "We are convinced that Manuel Baum is the correct coach to further implement the philosophy of FC Augsburg and help bring the club forward.
"This is why we have given him a long-term deal. He will not need a major adaptation period, as he has already been at the club for the last two and a half years and showed that he can successfully carry out the club's ideals with the younger teams."
Schuster was dismissed after a 1-0 defeat to Hamburg left Augsburg with just three wins in 14 top-flight matches.
