Vitor Pereira will succeed Andre Villas-Boas as head coach at Shanghai SIPG, the club announced on Tuesday.
The former Olympiacos boss had been out of work since leaving 1860 Munich in June and replaces Villas-Boas - who quit to take part in next year's Dakar Rally - at the helm, just as he did at Porto in 2011 having worked as his assistant.
Pereira will be hoping to emulate his achievements at Porto, where he won back-to-back Primeira Liga titles. He also oversaw a domestic double during six months at Olympiacos.
"Shanghai SIPG are delighted to announce Vitor Pereira as the club's new head coach," read a statement.
"Pereira is renowned for having an eye for developing young players, which is tallied with our club's high regard for youth development."
In his sole season in charge, Villas-Boas led the club to second place in the 2017 Chinese Super League and the semi-finals of the AFC Champions League, where they were beaten by eventual winners Urawa Red Diamonds.