"We hope that Terek will be able to establish itself as one of the top five teams."

Terek has competed admirably in the Russian Premier League since being allowed to play in its original home town of Grozny in 2008.

The club was formed in 1958 and won the Soviet Cup in 1974. But it vanished when war came to Chechnya in the 1990s and did not play again until 2001.

Kadyrov has prided himself on using Moscow's money and trust to rebuild the predominantly Muslim republic - a campaign that has seen sport and theater return to Grozny.

Terek now bears the name of the republic's former leader and Kadyrov's father Akhmad. Its financial health relies on local businessmen and the vast Chechen diaspora living across Russia.

The club's vice president said that getting the two-time world football player of the year and former Dutch captain to sign was not that difficult.

"There is really nothing surprising about us signing a contract with Ruud Gullit," Terek Vice-President Haidar Alkhanov said.

"We selected from a wide group of specialists that included Gullit."

The club said Gullit would be offered his predecessor's salary and have the option of renewing his contract when this one expires in 18 months.

Gullit has had an up-and-down career since being a part of the scintillating Dutch side that won the 1988 European Championship as well as the dominant AC Milan sides of the late 1980s.

He later became a color analyst for the BBC and famously coined the phrase "sexy football" during the Euro 96 campaign.

But the 48-year-old's spell at coaching has seen him steadily fall from English Premiership sides Chelsea and Newcastle United to the Dutch and US MLS divisions.

Sports commentators suggested Gullit may have simply run out of football options and decided to make a dramatic career move that also benefits a little-known club.

"This will certainly raise people's interest in Terek and Russian football as a whole," said Moscow Echo football commentator Anton Orekh.