Rumours were swirling yesterday as to who would replace Jose Mourinho in the Old Trafford hot seat, with Solskjaer among the front runners.
Solskjaer is still the Molde boss and is effectively on loan to United until the end of the Premier League season in May, when he will return to the Norwegian club. In 2008 he managed the club's reserves, before taking the managerial role at Molde in Norway.
So they have turned to the former United striker to take charge of the first team but it is highly unlikely he will get the job full-time in May.
It was reported on Tuesday that Alex Ferguson's long-time assistant, Mike Phelan, will work alongside Solskjaer.
"Ole is a club legend with huge experience, both on the pitch and in coaching roles", United executive vice chairman Ed Woodward said. "We are confident they will unite the players and the fans as we head into the second half of the season.".
The Norwegian, who has been managing Molde, took Cardiff down to the Championship in May 2014.
After losing 3-1 to Liverpool on Sunday, United now find themselves 19 points behind their rivals after just 17 games of the Premier League season.
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It is a dramatic return to the club where Solskjaer spent 11 years as a player, especially as he is also now employed by Molde.
In a very rare situation, the 45-year-old will return to Molde in 2019.
Solskjaer, along with Laurent Blanc, were the main contenders for the role following Jose Mourinho's sacking.
However, in two freakish cases, club legend Ole Gunnar Solskjaer has now been confirmed as the man to steady the ship.
Solskjaer's first match in charge is Saturday away to Cardiff City at 12:30 p.m. ET.
'This is an opportunity I had to take. We have built stone for stone and the end of the season this year gives us hope for another good season. I am looking forward to leading Manchester United until the summer.
United are sixth in the Premier League, 19 points behind leaders Liverpool, with Mourinho sacked because of the team's style, results and a poor record of developing young players.