As expected he will be joined by two assistants in a three-man team with former Germany striker Oliver Bierhoff and Holger Osieck.
Bierhoff will be the fitness coach while Osieck will have a general manager's role, and the trio will now be charged with leading the host nation in the 2006 World Cup. Klinsmann will pick the team.
"Jurgen Klinsmann and the German federation have reached an understanding that the team boss will sign a two-year contract," said a statement posted on www.dfb.de, the website of the German Football Federation (DFB).
Financial terms have been agreed although more talks are needed to sort out some matters of a sporting nature.
Jurgen remains a huge favourite at the Lane after two spells here. In the first, 1994-95, he scored 29 goals in 50 appearances and was voted Football Writers Player of the Year.
In his second spell, in the second half of the 1997-98 season, his four-goal haul in a crunch match at Wimbledon helped stave off the threat of relegation.
Spurs legend Jurgen Klinsmann has been named as the new coach of the German national team.