The Welsh club said that the former Manchester United player and current manager of Norwegian club Molde would debut in Saturday’s FA Cup match against Newcastle. He met players in Cardiff on Thursday.
"It's a fantastic challenge for me. Cardiff City are ready to take the next step up, I hope I can help them,” Solskjær said at a press conference in the Welsh capital.
"I've always dreamt of being a manager in the Premier League and I'm delighted to get the opportunity. I'm really looking forward to the challenge ahead. I'm going to bring my energy and enthusiasm to the club."
The club’s chairman Mehmet Dalman said Solskjær was the obvious choice:
"There was only one name in my head from the very beginning. We're delighted to welcome Ole to Cardiff City."
Solskjær also announced that will take his training team from Molde - Mark Dempsey and Richard Hartis - with him to Cardiff.
The news, while expected, was a blow to Molde, which now has to find a replacement for the manager that has taken it to league and cup success.
However, fans received a timely boost after it was announced that businessmen Kjell Inge Røkke and Bjørn Rune Gjelsten would give the club 125 million kroner to secure its smooth running. The pair are both long-standing financial supporters of Molde. At a press conference on Thursday, Molde chairman Leif-Arne Langøy said that 80-90 million was being given by Røkke, with the rest donated by Gjelsten.
“This will be used to invest in the stadium and for the running of the club for the next three years,” Langøy said.