Having signed a contract at the East German club until June 2015, the 37-year-old will take charge of team training for the first time on Thursday.
"His ideas make sense"
"From the start, we had the feeling that he really wanted to be part of the team and identified with our goals," explained club president Ulrich Lepsch. "There were more candidates and plenty of applications. Stephan Schmidt knows Bundesliga 2 the best, as well as the strengths and weaknesses of our players. His ideas make sense and he's proved he can develop and improve young players. That was essential to our deliberations."