Lyuboslav Penev was appointed Bulgaria's new coach on Wednesday, replacing former boss Lothar Matthaeus.

Matthaeus was fired in September after he failed to help Bulgaria qualify for Euro 2012 next summer, and according to Bulgarian Football Union president Borislav Mihailov, Penev has signed a two-year contract with an option for two more years.

Penev will now be charged with helping Bulgaria qualify for the 2014 World Cup from a group that includes Italy, Denmark, the Czech Republic, Armenia and Malta.

The 45-year-old has coached top Bulgarian sides in CSKA Sofia and Litex Lovech and he earned 62 caps for the national team as a player.