The 49-year-old former Ayr United manager and Motherwell player-coach, who has signed a two-year deal, said he was delighted to be working in Scotland again, 11 years after his last job north of the border.
"I've been very impressed with everything around the club and I share the ambition of Phil Anderton, the chairman and [the club's owner] Mr [Vladimir] Romanov. I believe we can be very successful here, and I look forward to the excellent support I know we'll get from all the thousands of fans who follow Hearts."
Burley was chosen in preference to a number of other candidates, including ex-Parma coach Nevio Scala. "His track record in management is outstanding, and bringing him here is a significant coup," George Foulkes, the Hearts chairman, said. "We have taken our time, and, in so doing, have attracted a manager who has a tremendous record."
Michael Stewart, meanwhile, who played on loan from Manchester United for Hearts last season, has signed a one-year loan deal with Hibernian.
The Arsenal striker Jeremie Aliadière arrived in Glasgow yesterday with a view to completing his loan move to Celtic.
The Frenchman, 22, is set to become Gordon Strachan's second signing, with the free agent Mo Camara having joined from Burnley to fill the left-back slot.
The Dundee defender Lee Wilkie has successfully undergone his second major knee operation in 18 months. The Scotland international had a cruciate ligament transplant in pioneering surgery in Colorado.
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