Fulham had been seeking a replacement for Roy Hodgson since he swapped Craven Cottage for Anfield earlier this summer, and failed in a bid to prise Martin Jol from Ajax.
Former Manchester City manager Hughes emerged as the frontrunner after talks with the Dutchman ran their course, and he will begin work at the club immediately, taking charge of his first match in the friendly meeting with Werder Bremen on August 7th.
Meanwhile, Celtic have announced the signing of Israel midfielder Beram Kayal. The 22-year-old has signed a four-year contract after completing his move from Maccabi Haifa, subject to final paperwork.
Kayal was unveiled at the club’s Lennoxtown training ground yesterday as Celtic look to lift the gloom following their 3-0 Champions League defeat by Sporting Braga.
Ipswich Town have accepted bids for Republic of Ireland players Alex Bruce and Owen Garvan.
Defender Bruce is in talks with fellow Championship side Leeds United while midfielder Garvan could be on his way to Crystal Palace.
“A fee has been accepted and we have given them permission to talk to the clubs, it’s up to the players now to agree a deal,” said manager Roy Keane.
Birmingham City’s 25-year-old Cork-born goalkeeper Colin Doyle has linked up with English League One side Plymouth on a week’s trial.