 Davies left Derby in November 2007
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Nottingham Forest have named Billy Davies as their new manager.
The 44-year-old ex Derby, Preston and Motherwell boss, who replaces Colin Calderwood, has signed a three-and-a-half-year deal.
Former Sheffield United coach David Kelly, who worked with Davies at Derby, becomes the club's assistant manager.
The pair officially take over on Monday with caretaker boss John Pemberton in charge of the side for Saturday's FA Cup tie against Manchester City.
Calderwood was sacked after two-and-a-half years at the City Ground following the 4-2 home defeat by relegation rivals Doncaster on Boxing Day.
"Billy's record in the Championship is superb and we're hoping he can build on his already impressive achievements with us," chief executive Mark Arthur told the club's official website.
Davies' last managerial job was at the helm of Reds' rivals Derby, who he led to promotion to the Premier League in his first season in charge.
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The former Motherwell and Preston manager had been linked to jobs at Dundee and Hearts earlier in the year.
He was appointed manager of the Rams in June 2006 after leaving Preston and immediately guided the club to promotion via the Championship play-offs, beating West Brom 1-0 in the final at Wembley.
But he was sacked in November 2007 with Derby rock-bottom of the Premier League, having won just one game, against Newcastle at Pride Park.
That proved to be the club's only success of the season as the Rams were relegated with a record low points total.
He takes over at Forest with the Reds currently fourth from bottom of the Championship on goal difference.
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