The Dutchman first took over at the club in March this year, replacing Thomas Schneider.
He successfully steered the team away from trouble, as Stuttgart ended the 2013-14 campaign 15th, one place and five points clear of the relegation play-off berth.
Stevens departed at the end of the season and was replaced by Armin Veh, who resigned on Monday after a poor start to 2014-15, with Stuttgart bottom of the table after 12 games.
"Huub Stevens will be the new head coach of the VfB," a brief statement on the club's website read.
"The 60-year-old takes over with immediate effect and will already lead the team training on Tuesday afternoon."
Stevens' appointment marks his seventh tenure in charge of a German side, after two previous stints at Schalke, as well as spells at Hertha Berlin, Cologne and Hamburg.
