The Netherlands national coach has been linked with United since the departure of David Moyes towards the end of last season.
Van Gaal will join United after Holland complete their World Cup campaign in Brazil and he has signed a three-year deal.
Van Gaal told the club's official website: "It was always a wish for me to work in the Premier League.
"To work as a manager for Manchester United, the biggest club in the world, makes me very proud!
"I have managed in games at Old Trafford before and know what an
incredible arena Old Trafford is and how passionate and knowledgeable
the fans are.
"This club has big ambitions; I too have big ambitions. Together I'm sure we will make history."
Giggs is looking forward to working under another manager with the
experience Van Gaal will bring to the club, having spent so many years
as a player under Sir Alex Ferguson.
He said: "I am thrilled to have the chance to serve as assistant
manager. Louis van Gaal is a world-class coach and I know I will learn a
lot about coaching from being able to observe and contribute at such
close quarters.
"Manchester United has been a huge part of my life and I'm delighted
to be able to continue that relationship in such a key role."
Chief executive Ed Woodward added: "In Louis van Gaal, we have
secured the services of one of the outstanding managers in the game
today.
"He has achieved many things in his career to date and Old Trafford
provides him with a fitting stage on which to write new chapters in the
Manchester United story.
"Everyone is very excited about this new phase in the club's history.
His track record of success in winning leagues and cups across Europe
throughout his career makes him the perfect choice for us.
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