The 65-year-old replaces Ney Franco, who was sacked last week after a poor run of results, reports Xinhua news agency.
"It's a great opportunity, my first time coaching a club from the northeast of Brazil," Luxemburgo said in a statement published on the Brazilian Serie A club's website on Monday.
"My aim is to win the Brazilian league title. I have watched some of Sport's games and the team has a good mix of experience and youth."
The most successful manager in the history of Brazil's Serie A with five league titles, Luxemburgo has not coached since parting ways with China's Tianjin Quanjian in June last year.
He was Brazil's national team boss from 1998 to 2000 and had a 11-month spell in charge of Real Madrid in 2005.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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