Premier League strugglers West Brom have confirmed the appointment of former Liverpool boss Roy Hodgson as new head coach until June 2012.
Di Matteo was relieved of his duties and placed on gardening leave on Sunday following a 3-0 defeat to Manchester City - the Baggies' 13th defeat in 18 games in all competitions.
Last weekend's defeat left Albion only two points clear of the Premier League relegation zone.
First-team coach Michael Appleton was handed the reins on a caretaker basis while a replacement was sought, and will remain in charge for Saturday's game against fellow strugglers West Ham.
A club statement read: "West Bromwich Albion are delighted to announce they have appointed Roy Hodgson as the club's new head coach.
"The 63-year-old former Inter Milan, Switzerland, Fulham and Liverpool boss has this morning committed himself to the club until June 2012.
"Hodgson was voted manager of the year by the League Managers' Association last season after guiding Fulham to the Europa League final.
"Michael Appleton, who was appointed caretaker head coach on Sunday after Roberto Di Matteo was relieved of his duties, will remain in charge for the West Ham game.
Hodgson's appointment comes just over a month after his departure from Anfield - and he will not have to wait long to face his former club, with Kenny Dalglish's Reds due at The Hawthorns on April 2.
Liverpool's owners New England Sports Ventures put an end to Hodgson's miserable spell on Merseyside on January 8 and immediately installed club legend Dalglish to take over in the interim.
Although the Reds' statement at the time said Hodgson's departure was by mutual consent there is no doubt the club's American owners pulled the trigger - especially as less than a fortnight ago earlier the manager insisted he had no intention of resigning.
