Gary Naysmith is taking the top job and will be joined by his assistant Dougie Anderson, taking up the reins of the Dumfries side next week following East Fife’s Scottish Cup replay against Edinburgh City.
Taking on the role, Gary, 38, said: “I’m thrilled to be taking over at Queens, they are a decent sized club with plenty of potential.
“I’ve loved my time at East Fife and thank them for giving me the opportunity, but I’m delighted to be making the move back to a full time club and being able to work with the players on a daily basis.
“Queens have some decent players within the squad and I’m looking forward to working with them to achieve success.”
Defender Naysmith started his senior career with Heart of Midlothian before moving to England where he played for Sheffield United, Huddersfield and most noteably Everton.
On returning to Scotland he joined Aberdeen before taking over as manager at East Fife.
And he has gained respect as a manager after he steered the Methil club to promotion to League One last season.
Over the past couple of days he has been one of the names linked to the Hearts job following Robbie Neilson’s departure to MK Dons.
Welcoming the appointment, Queen of the South chairman Billy Hewitson said: “We are delighted to welcome Gary to Palmerston.
“With his involvement at another club it’s been a complicated process and not as straightforward as some would’ve liked, but we feel we have appointed the right person and we look forward to working with him.”