The 61-year-old German will take over...
Lowy made the announcement via a video conference from Ljubljana, where the side currently find themselves ahead of their international friendly against Slovenia.
"Our coaching selection committee set out a number of very clear objectives from the outset to measure the prospective coaches against," the chairman stated.
"They must have demonstrated the capacity to rebuild teams and to work with young footballers and develop them into internationally competitive players, be prepared to work with the national technical director and his department to enhance the elite player pathway program, have proven experience at international level and success in Asia and commit to be based in Australia and work with Australian staff to develop our own leaders of the future.
"Holger clearly meets these criteria and comes highly recommended as he has worked at all levels of the game and will combine his coaching expertise and experience with an ability to contribute to the future development of young players and in particular will act as mentor to Australian coaches as we develop our own national coaches for the future," Lowy revealed.
Osieck admits he is "excited" about the propsition of being charge of the Socceroos.
"I am excited about working with the Socceroos and building on the team’s impressive results in Asia and around the world,” Osieck said.
"Taking over at a stage of natural transition as we start our preparations for 2014 is an ideal opportunity to influence the future direction of the young players and coaches from Australia."
Osieck began his coaching career as an assistant to Franz Beckenbauer when Germany won the World Cup in 1990. The German has also coached Bundesliga side Bochum, Turkish team Fenerbahce and had two stints as boss of Japan's Urawa Red Diamonds, taking the side to the Asian Champions League and winning the tournament in 2007.
He has also spent time as a national team coach, leading Canada to the CONCACAF Gold Cup in 2000.
Other candidates linked to the position vacated by Pim Verbeek included former Cameroon boss Paul Le Guen, Dutchman Ronald Koeman and Argentine Jose Peckekman.
Osieck will be in charge of Australia's upcoming friendlies, against Switzerland on September 3 and Poland four days later.