The Dutchman revealed last week he would quit his job as Russia coach when his contract expires in June.
Hiddink has signed a two-year contract with the option for a further two years with Turkey.
“Dutch coach Guus Hiddink has accepted to take charge of Turkey until August 2012 after announcing he won’t extend his contract with the Football Union of Russia which was due to expire on 30 June,” the federation said in a statement.
“Turkish Football Federation (TFF) president Mahmut Ozgener and TFF vice-president Lutfi Aribogan flew to Amsterdam to finalise the negotiations with Hiddink.
“The 63-year-old experienced coach agreed to a two-year contract with an option for a further two years.”