Former England [ Images ] manager Steve McClaren has been appointed coach of FC Twente, the Dutch club said on Friday.

The 47-year-old, sacked as England coach last year after failing to qualify for the Euro 2008 [ Images ] finals, has agreed a two-year contract, according to the club's Web site (www.fctwente.nl).

McClaren will succeed Fred Rutten, who helped FC Twente qualify for the preliminary rounds of the Champions League [ Images ].

The club, from the eastern town of Enschede, beat Ajax Amsterdam in the playoffs shortly before Rutten left for German Bundesliga club Schalke 04.

"It is a big challenge for me to compete with FC Twente in the Dutch league and the Champions League and I have the feeling we all will start the season with a positive feeling," McClaren said in a statement.

Twente chairman Joop Munsterman said McClaren was the right man to succeed Rutten. "It is important that FC Twente's technical policy will be continued," he said.