Kombouare, which coached PSG between 2009 and 2011, was sacked by Guingamp last November with the club bottom of Ligue 1.
But he has been given a route back into management by Dijon, also battling relegation, as a replacement for Olivier Dall'Oglio.
Kombouare officially takes charge from Friday and he will be in the dugout for Dijon's Ligue 1 game at home to Montpellier on Monday (AEDT), having signed a deal to the end of the season.
The 55-year-old has also coached clubs including Strasbourg, Valenciennes, Al Hilal and Lens during his managerial career.
Dijon is 18th in the table having won only once in the league, a 2-1 win against Guingamp last month, since August.