The 40-year-old has previously held positions as Under-19 and Under-23 coach with Der Kleeblatter and arrives at the Trolli Arena after a stint overseeing Hoffenheim's reserve team.
Kramer said that he is aiming the make the best of a bad situation.
"I am delighted to return to Furth," ESPN quotes Kramer as saying.
"Right now, it is not an easy situation, but we will work night and day to make the best out of it."
Kramer has signed a contract until 2015.