Paul Roos has been appointed as the new coach of AFL club Melbourne.

Roos, who coached Sydney to their drought-breaking 2005 premiership, has signed a two-year deal with Melbourne, with an option for a third year.

The highly-regarded Roos coached the Swans to seven finals series from eight full seasons, before handing over the reins to John Longmire in 2011.

His appointment is a massive coup for the Demons, who sacked Mark Neeld as coach midway through the 2013 season.

Former Adelaide coach Neil Craig coached the Demons’ for the remainder of the season.

Melbourne finished second-bottom on the ladder with two wins, ahead of only Greater Western Sydney.

Roos will be officially announced as Melbourne coach at a media conference at midday (AEST) at the MCG.

The 50-year-old also enjoyed a magnificent playing career, including 356 matches for Fitzroy and Sydney from 1982-98.