"Miodrag Jesic is the new coach of CSKA," chief executive Georgi Iliev told reporters at the club's Bulgarska Armiya stadium on Monday.
Serb Jesic, 54, who will be officially presented at a news conference on Tuesday, was previously in charge of the club between 2004-06 and led them to the league title in 2005.
He also coached Slavia Sofia and Litex Lovech in the Bulgarian top flight.
The much-travelled Jesic, who has also had jobs in Serbia, Turkey, Iran, Romania, Montenegro, Libya, China and Saudi Arabia, replaces crowd favourite Stoycho Mladenov.
Former Bulgaria coach Mladenov was sacked on Friday after CSKA's mediocre performances in the first half of the season.
The Reds, who have not won the title since 2008, are fourth in the table with 29 points from 15 matches, nine points behind leaders Ludogorets.
The league is on its mid-season break and will resume on March 2. (Reporting by Angel Krasimirov; editing by Tony Jimenez)