Hiddink replaces Gadzhi Gadzhiyev, who was fired earlier this year.
He will earn a reported 8 million euros at the Russian side, who train in Moscow but play in the war torn region of Makhachkala.
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Liverpool have unveiled their new home kit for next season, sticking with the hugely popular retro styling of the current shirt.
The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.