The former Barnsley boss has signed a contract until the summer of 2022 and will take up his new post at Tynecastle this Tuesday, December 10.
A club statement said: "While it has taken some time for this process to reach its conclusion, we firmly believe that Daniel is the right man to take the club forward.
"With our number one target now on board, and his future pledged to Hearts, everyone at Tynecastle Park welcomes Daniel and hopes his appointment heralds an exciting new era for the club as, together, we look to climb back up the Ladbrokes Premiership table."
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