Steve McClaren has been confirmed as coach of FC Twente after deciding to restore his reputation abroad.

The former England head coach had been interviewed for the vacancy at Blackburn Rovers, but has opted for the Dutch club, who are two qualifying games away from the Champions League group stage.

"I am delighted that I have got the chance to become coach of FC Twente," he said. "I noted from the first meeting with chairman Joop Munsterman and other people at the club that they were very co-operative.

"It's an exciting time for the club, they were very successful under Fred Rutten and I cannot wait to meet the players and technical staff and to get to work."

"It's a great challenge for me to be with FC Twente in the Eredivisie and Champions League and I think we can all start with a positive feeling for the new season. I would like to say to the fans, about whom I have heard a lot, that we will do everything we can to bring the club further success.

McClaren had initially turned down the offer from Twente for family reasons, but, having resolved those concerns, has signed a two-year contract and will move to the Netherlands.

"Sir Bobby Robson told me that this would be a nice challenge for me," McClaren added. "He also told me that FC Twente is a fantastic club and that I would feel at home. I am excited to be working again at a club that fits me well. I am looking forward to this new challenge."

Twente clinched a place in the Champions League third qualifying round through a play-off system and McClaren, who led Middlesbrough to the final of the Uefa Cup in 2006, will hope to secure some high-profile European matches, as well as taking on Ajax and PSV Eindhoven in the domestic league.

McClaren has been out of work since the FA dismissed him after England failed to reach Euro 2008.