The announcement was confirmed on the club’s official website on Tuesday and he will take charge of his first match against Maritimo on Sunday.
Peseiro has been in charge at Egyptian club Al Ahly for the past three months. Before that, he coached several Portuguese clubs as well as Panathinaikos, Dynamo Bucharest and the Saudi Arabian national team.
The 55-year-old has won just one trophy in his coaching career, leading Braga to the Portuguese League Cup in the 2012-13 season.
Porto fired Lopetegui on Jan. 8 after a three-game winless streak and the club is currently third in the league, five points adrift of leader Sporting Lisbon.