The 59-year-old has signed a one-year rolling contract at the club and takes over after the Lions parted ways with former boss Alexander Schmidt.
"The right man"
"We're all behind this decision," explained the club's President Gerhard Mayrhofer. "Friedhelm Funkel is a coach with whom we want to achieve our objectives this season. We're convinced he is the right man to take the club in the right direction."
Funkel, who has previously coached Bundesliga sides Hertha Berlin and Eintracht Frankfurt and whose last post was at Alemannia Aachen, will be officially unveiled as the club's new head coach at a press conference on Sunday afternoon.