The former Sunderland boss has returned to the fold as a replacement for Danny Blind, who was sacked by the Dutch FA in March after the nation's hopes of qualifying for the 2018 World Cup took a hit.
Blind's 20-month spell was a forgettable one as he failed to guide the team to the 2016 European Championships.
Advocaat, who previously coached the national team for four years across two spells, will return to the helm with Ruud Gullit as his assistant.
The 69-year-old has signed a deal until the end of the World Cup qualifying campaign, but it will be extended if the Netherlands reach the finals in Russia.
Advocaat was named as Blind's assistant, but he spent just three months in the role before taking over at Fenerbahce in August 2016, where he lasted seven months.