Newspaper La Gazzetta dello Sport reported on Sunday that Mancini’s contract in Saudi Arabia would come with an annual salary of 25 million euros ($27 million).
His salary was not disclosed in the federation’s statement.
“The appointment confirms a new era of development for the Saudi Arabian national team and marks a new milestone in Mancini’s distinguished career,” the Saudi federation said in a statement confirming Mancini’s appointment.
Mancini was due to arrive in the Saudi capital Riyadh on Monday to appear before the media.
His first match with the team is scheduled for 8 September in an international friendly against Costa Rica at St James’ Park, the home of Newcastle, which is owned by the Saudi Sovereign Wealth Fund.
Another friendly match against South Korea is scheduled to be held in the English city on 12 September.
A video posted on Twitter on Sunday by the account X, formerly of the Saudi national team, shows Mancini in a white shirt and green tie announcing, “I made history in Europe, now to make history with Saudi.” It’s time.”
The duration of his new contract means Mancini will potentially lead the Saudis to the next World Cup, and a source close to the talks told AFP that the Saudi federation was “very optimistic” under his leadership.