The 68-year-old returns to the Buenos Aires club for his fourth spell in charge, replacing Diego Simeone, who recently left to occupy the hotseat at Atletico Madrid
The veteran trainer will commence work once the Clausura begins in February next year and fills the void left by Diego Simeone, who vacated the post to take charge of Atletico Madrid during the past week.
Basile told Radio Belgrano on Monday that he is champing at the bit to start his fourth spell at Racing, but admits his immediate priority will be to sort out the future of unhappy striker Teofilo Gutierrez, who has been linked with a move to Fiorentina.
"I've got a lot of faith in the players that are already in the squad," said Basile. "I have the right ones. Next year will be very good.
"[Gutierrez] is a guy I like, he's fundamental for my system. I've got to convince him [to stay]. It's one of the things I'll have to discuss with the directors."
His sentiments were echoed by president Rodolfo Molina, who assured supporters that their previous differences have been cast aside and the parties are now ready to collectively focus their energies on the forthcoming Clausura campaign.
"We talked through the differences we had and now everything is resolved. We're very happy to be able to start 2012 with a coach and now we must get down to work," Molina told Ole.
Basile's most prestigious honours in management include two Copa Americas with Argentina in 1991 and 1993, plus a Primera Division triumph as Boca coach, following Apertura and Clausura victories in 2005 and 2006.