The Dutchman, who has won titles with Ajax, Barcelona, Bayern Munich and AZ Alkmaar, will take charge at Old Trafford after leading the Netherlands at this summer's World Cup in Brazil.
"This club has big ambitions; I too have big ambitions," he said. "Together I'm sure we will make history."
He added: "It was always a wish for me to work in the Premier League.
"To work as a manager for Manchester United, the biggest club in the world, makes me very proud.
"I have managed in games at Old Trafford before and know what an incredible arena Old Trafford is and how passionate and knowledgeable the fans are."
After ending the reign of Moyes in April after a troubled 10 months, United executive vice-chairman Ed Woodward is convinced he has appointed the right man this time.
"His track record of success in winning leagues and cups across Europe throughout his career makes him the perfect choice," said Woodward.
Glory for Van Gaal
National titles: Ajax (1993-94, 1994-95, 1995-96), Barcelona (1997-98, 1998-99), AZ Alkmaar (2008-09), Bayern Munich (2009-10)
Champions League: Ajax (1994-95)
Uefa Cup: Ajax (1991-92)
"In Louis van Gaal, we have secured the services of one of the outstanding managers in the game today.
"Old Trafford provides him with a fitting stage on which to write new chapters in the Manchester United story. "
It seems Van Gaal has wasted no time in making his intentions clear.
"Louis has already communicated some great ideas for how the club can move forward," said United co-chairman Avie Glazer.
"The board is right behind him in his plans and everyone here is already looking forward to the start of next season."
Giggs, 40, who took charge for the final four games of the season following the departure of Moyes, met Van Gaal in the Netherlands last week to talk about his future.
Club legend Giggs, Real Madrid boss Carlo Ancelotti and Borussia Dortmund manager Jurgen Klopp had been linked to the post, but Van Gaal is the man trusted to restore the club to the top of the domestic and European game.
Known for employing an attacking style and his demands for discipline from his players, he came to prominence when he guided a young Ajax team, featuring Clarence Seedorf, Edgar Davids and Patrick Kluivert, to a surprise Champions League final victory over AC Milan in 1995.
Second time around?
Louis van Gaal
Van Gaal claimed in his 2009 autobiography he had been lined up to replace Sir Alex Ferguson at United in 2002, but the Scot changed his mind to continue at the helm for another 11 years.
He won two Spanish league titles with Barcelona, but failed to qualify for the 2002 World Cup with the Netherlands.
Van Gaal returned to Barca, but left the Catalans only three points above the relegation zone in La Liga when he was dismissed after half a season.
He revived his reputation back in his homeland, leading AZ Alkmaar to only the second Dutch title in their history, and then, in his first season in charge, took Bayern Munich to the German title and the Champions League final in 2010.
He was dismissed after results tailed off in the following campaign but laid the foundations for Bayern's current domination of German football by promoting young players such as midfielder Thomas Muller.
He has a strong relationship with United striker Robin van Persie, whom he installed as Netherlands captain in June 2013, and is expected to be given significant transfer funds to bring in new players as the club plot path back to the top.
"I have also been extremely impressed by his intelligence, thoughtful approach to the role and his diligence," said Woodward. "I am looking forward to working with him."
Van Gaal named United manager
- Club appoints Dutch national coach, who won multiple titles in Holland, Spain, Germany
- Ryan Giggs to be assistant manager
- Frans Hoek and Marcel Bout join as assistant coaches
- Ryan Giggs to be assistant manager
- Frans Hoek and Marcel Bout join as assistant coaches
Louis van Gaal will take over as manager of Manchester United from the 2014/15 season. He has signed a three-year contract.
Louis, 62, has managed at the top level of European football for over 20 years and in that time has won domestic titles and domestic cups in three countries, as well as the UEFA Champions League, the UEFA Cup, an Intercontinental Cup, two UEFA Super Cups and domestic Super Cups in Holland and Germany.
He will take up his post after the FIFA World Cup, where he will manage the Dutch national team.
Ryan Giggs, English football's most decorated footballer and the United player with the most appearances in the club's history, has been appointed as assistant manager. Ryan took charge of the first team for the last four matches of the 2013/14 season.
Announcing the appointments, Ed Woodward said: "In Louis van Gaal, we have secured the services of one of the outstanding managers in the game today. He has achieved many things in his career to date and Old Trafford provides him with a fitting stage on which to write new chapters in the Manchester United story.
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