Velud, 62, will take over on a two-year deal.
He was coach of Togo at the AFCON in 2010 when a deadly ambush on the team bus killed three people and prompted them to pull out of the tournament.
Velud has had stints with a number of North African clubs including ES Setif, USM Alger, Etoile du Sahel and JS Kabylie.
He also won the CAF Confederation Cup with TP Mazembe of the Democratic Republic of Congo in 2016.
Velud helped Sudan qualify for the 2021 AFCON but was dismissed in December, paying the price for winless World Cup and Arab Cup group campaigns.
Malo's contract expired in February after he led Burkina Faso to fourth place at the AFCON in Cameroon. The Stallions were beaten 3-1 by eventual champions Senegal in the semi-finals.
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