The former Aston Villa boss won’t take charge of managerial duties at Hillsborough until 1 February, with assistants Steve Agnew and Stephen Clemence leading the side until then.
The 58-year-old has previously managed Wednesday’s local rivals Sheffield United, as well as fellow Yorkshire clubs Huddersfield Town and Hull City.
Throughout his 21-year career as a manager, Bruce has steered both Hull City (2013 and 2016) and Birmingham City (2002 and 2008) to the Premier League.
He also guided Aston Villa to the Championship play-off final last year, where his side lost 1-0 to Fulham. He was sacked five months later.
Bruce succeeds Jos Luhukay, who was dismissed by Wednesday last month after less than a year in charge.
The former Manchester United player has overseen more than 880 games, with a total of nine clubs, since taking his first job as a player-manager at Sheffield United in 1998.
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