The Socceroos were searching for a new coach after Ange Postecoglou surprisingly walked away, despite guiding Australia to a fourth successive World Cup via the inter-continental play-offs in November.
Dutchman Van Marwijk, who led Saudi Arabia to World Cup qualification before leaving in September past year over a contract dispute, was one of the leading foreign candidates to take on the short-term coaching stint.
But they have chose to go with veteran boss Van Marwijk - the man who led Holland to the 2010 World Cup Final, and who was in charge of Saudi Arabia during qualifying for the tournament.
"We now go to Russian Federation with a battle-hardened group of players and support staff who made it to the finals by the toughest road possible".
Foreigners Roberto Mancini, Luiz Felipe Scolari, Jurgen Klinsmann, Marcelo Bielsa and Sven-Goran Eriksson were all linked with the vacant post.
"This is a great result for Australian football", he said.
Former Netherlands boss Bert van Marwijk has taken charge of the Australian national team. "These experiences make him a compelling choice".
His biggest coaching achievement was reaching the 2010 final with the Netherlands, lost 1-0 to Spain in extra time.
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He was appointed head coach of the Dutch national team after the country's quarter-final exit at Euro 2008 under Marco van Basten and two years later, led the Netherlands to their first appearance in a World Cup final since 1978.
Van Marwijk inherits a team that struggled at times during the qualification campaign and is still heavily reliant on the goals of Tim Cahill, who turned 38 last month.
The 65-year-old most recently guided Saudi Arabia to World Cup qualification for the first time since 2006. "I want to win our matches".
FFA Chief Executive Officer David Gallop brokered the deal to bring Van Marwijk on board in Amsterdam.
"We went through a thorough and disciplined process and used internal and external experts to build up a profile of the person who would be the best fit for the task in Russian Federation".
The Socceroos have been drawn in Group C of the World Cup together with France, Denmark and Peru, with their first game against Les Bleus on June 16.
The appointment could last only for the June-July World Cup, with the FFA saying that arrangements for the coaching role after the tournament "will be announced in the near future".