Babbel, 45, was announced as the A-League club's new boss on Saturday, having left his post at Swiss side Luzern in January.

The former Germany international, who won the Bundesliga, UEFA Cup, FA Cup and UEFA Euro 1996 as a player, becomes the Wanderers' third permanent coach, replacing the sacked Josep Gombau.

"I am very proud and very happy to be here," Babbel said.

"I had really good conversations with the club when they came to visit me in Germany and I could see the fever in their eyes about the vision and what Western Sydney would like to do in the next couple of years. 

"I was thinking about it and talking to friends who know about the Australian league and I said to my wife that I have a good feeling and I'm ready now for a new experience. 

"I'm looking forward and I would like to say thank you to the club for trusting in me and I will give 100 per cent towards our vision."

The job is Babbel's fifth, coming after stints at Stuttgart, Hertha Berlin, Hoffenheim and Luzern.

Western Sydney, the  A-League premier in 2013 and an AFC Champions League winner a year later, finished in a disappointing seventh last season.

"Today we have made a statement about our future and I am very proud to announce Markus Babbel as our new head coach," Wanderers chairman Paul Lederer said.

"In the next 18 months we will have our new training facility finished, our new stadium open and our club ready to take another giant [step].

"Having a coach like Markus involved with this club will make us a force in this league as we strive to win trophies, return to the AFC Champions League and make a statement not only in Australia but internationally as a football club."