Magilton will be the youngest boss in the Championship

The 37-year-old former Northern Ireland midfielder arrived at Ipswich in 1999 and had been poised to leave Suffolk.

However, he will now replace Joe Royle, who parted company with the club on 11 May, while academy director Bryan Klug will become first-team coach.

"I feel like this is home and I want to achieve everything I can with this football club," ex-Ipswich captain Magilton told BBC Radio Five Live.

"The supporters can identify with me - I wear my heart on my sleeve and they're going to get passion and a will to win.

"Appointing any manager is a gamble, but I think I provide a sensible gamble because I know these players inside out.

"I know their moods, I know who to take a whip to, who to cajole. I'm going to hit the ground running - I can't wait to get my teeth into it."

We see it as a bold and progressive move, representing both continuity and change Ipswich chairman David Sheepshanks

The 37-year-old, the youngest manager in the Championship, made what was thought to be his farewell to Portman Road in the final home game of the 2005-2006 season against Derby in April.

And Magilton added: "The reception was overwhelming, and regardless of what happens now it will live with me for the rest of my days.

"A seed was planted and I wanted to give something back to the supporters, because I'm going to rely on them. I want that buzz back because there's nowhere better when this place is bouncing."

"It has come quicker than I expected, obviously, but I am not intimidated in any way about the job. I embrace it, although I am under no illusions about the task ahead."

Magilton, who also played for Oxford, Southampton and Sheffield Wednesday, beat off the challenge of over 40 candidates for the position of manager.

Chairman David Sheepshanks told the club website: "Jim's outstanding leadership qualities, passion for both the club and the job and his will to be a winner have shone through from the beginning of the process.

"He has outlined a clear strategy and plan of approach that has won the unanimous support of the board in making this appointment.