The ex-Barcelona boss made the decision to have 12 months away from the sport after leaving Camp Nou last summer and the current USA coach believes the timing of his arrival in the Bundesliga will be just perfect.
“I just think it's fantastic he's back in the game. I think it's a fascinating situation now for the club and the coach,” he told reporters.
“For Pep it's a wonderful opportunity. It's a huge challenge for him to work with Bayern Munich. It was about time that he came back into the game because he's a very, very exceptional young coach out there. I just wish him all the very best there.”
Klinsmann - who was in charge at Bayern during the 2008/09 season - is confident the 41-year-old will adapt to his new surroundings, but admits he is curious to see how he will implement his philosophy at a different club.
“Every club is different,” he explained.
“A coach adjusts to his environment. Pep will also adjust to the environment at Bayern Munich. That's what makes every one of these clubs really different and special.
"It will be interesting to see how he can adjust, how he can implement his ideas, because the club is led completely different than Barcelona.”