Former Braga tactician takes the lead role at the Estadio Jose Alvalade following impressive season
Paciencia leaves Braga after leading the club to the Europa League final which they lost to Portuguese champions Porto 1-0 last week.
A statement on Sporting's official website reads:
"Sporting Clube de Portugal informs that Domingos Paciencia will be head coach of the first team starting from the 2011-12 season."
The former Portuguese international, 42, was at the helm for two years and led Braga to a fourth place finish this term in which they qualified for the Europa League for the new campaign.
His best results were, perhaps, guiding the club to the Champions League groups stages in which they beat Celtic and Sevilla along the way.
Paciencia replaces Jose Couceiro at the Jose Alvalade stadium. The terms of the deal have not yet been disclosed.