The 49-year-old was not initially thought to be a contender at Saints, with caretaker boss Dave Bassett apparently convinced Dutchman Mark Wotte’s appointment was a matter of time.

However, Burley impressed Saints’ chairman Rupert Lowe and now has the challenge of lifting the team out of mid-table.

Sir Clive Woodward, England’s World Cup-winning rugby union coach two years ago, takes over as the Coca-Cola Championship club’s director of football.

Lowe said: “I believe we now have a management team that will deliver stability, results and exciting football.”

What that will mean for Bassett, brought to the club by Burley’s predecessor Harry Redknapp, should also be made known today.

Bassett had wanted the job on a permanent basis but was overlooked in favour of Burley, who boasts both a good record at Championship level plus recent success to his name.

Burley inherits a team 12th in the Championship, just four points off the play-off places, following 13 draws from their 23 games.

“I am very pleased to come on board at St Mary’s and I am looking forward to taking my first game at Vicarage Road on Boxing Day,” said the Scot, who has also managed Colchester, Ipswich and Derby.

“Southampton have an exciting young team and I believe that they should, and can, be much higher in the Championship table than they are.

“It’s my job to make sure that this happens. I am delighted to accept the head coach position.

“I’m at my best on the training ground and my role at Southampton will allow me to concentrate on that.

“Clive and I have had detailed discussions on how we will work together and I’m excited by the prospect.”

Lowe told his club’s official website, www.saintsfc.co.uk: “In George and Clive we have got a management team of undoubted quality with strengths in complementary areas, who share the same vision for Southampton and give us the best possible chance of returning the club to the Premier League in the shortest possible time.”

Wotte had resigned as director of football at Feyenoord with a view to returning to coaching, but Woodward declared: “George is the right appointment for the club.

“As head coach he will have complete control of team selection, tactics and coaching issues and I will concentrate on strategic issues which affect the club in less obvious but equally important ways.

“The chairman, George and myself have a very clear idea of where we want to take this club and I really look forward to working with George.”