The Algerian federation says the Bosnian’s main objectives will be to qualify the team for the next two editions of the African Cup of Nations plus the 2014 World Cup.
The 59-year-old Halilhodzic replaces Abdelhak Benchikha, who resigned after a 4-0 loss to Morocco in an African Cup qualifier earlier this month.
Halilhodzic won the league and Cup double in Croatia with Dinamo Zagreb this season. He has also coached Lille, lifting the club from second division to the Champions League, Paris Saint-Germain, Raja Casablanca and Trabzonspor.
A strong disciplinarian, Halilhodzic also led Ivory Coast but was fired just months before the 2010 World Cup.