Mixu Paatelainen (left) in action for St Mirren

Paatelainen succeeds Dave Baikie, who resigned as he awaits sentence after pleading guilty to a serious assault.

The 38-year-old, most recently with St Mirren, has signed a three-year contract at Central Park.

Cowdenbeath hope to be moving to a new stadium by then, although plans are at a very early stage.

Club chairman Gordon McDougal told BBC Sport: "It is very much down to planning as it has a big say in identifying a location.

"We are a bit down the road and, hopefully, by the end of this year, we will have something to say.

It is a tremendous opportunity for me to experience the management side of things Mixu Paatelainen

"Things like this don't come quickly and, realistically, if we can have something organised within 12 months, we will be doing very well, with a further 12 to 18 months to implement what is planned."

Paatelainen will hope to have led Cowdenbeath to promotion by then.

"It is a tremendous opportunity for me to experience the management side of things and hopefully we can take the club further," said the former Finland international.

Paatelainen has been recovering from a knee injury this summer and could resume his playing career as a player-boss.

He began his career with FC Haka but moved to United in 1987 then on to Aberdeen, Bolton and Wolverhampton Wanderers.

He also played for Strasbourg in France in between two spells with Hibs before moving to St Johnstone and then St Mirren.

St Mirren manager Gus MacPherson said: "This is a fantastic opportunity for Mixu.

"I think he has always harboured ambitions to get involved in the management side of football, so this opportunity was too big for him to turn down.

"In this game, for a player to progress to management you have got to take the opportunity when it comes along.

"Mixu didn't have a contract with us here at St Mirren as he was still working on his fitness after his knee operation, so there was that side of things for him to take into account as well. "We've lost a player/coach, but Mixu was brought to the club specifically to play.

"We were also in a position where we could offer him a coaching role at the club."