The 53-year-old assumes control of the newly promoted club two days after the man who secured a return to the top flight, Fernando Vazquez, was sacked.
Vazquez's comments regarding the club's recent transfer acquisitions saw him relieved of his duties and Depor have wasted no time in bringing in his replacement.
"Victor Fernandez becomes new coach of Deportivo following agreement this afternoon between the technician and the club," the club announced on their official website.
Fernandez recently spent time in charge of Gent in Belgium, but he returns to Spain to make Depor the seventh club of his managerial career.
Thursday was a day of incomings at the club with the news that former Barcelona B forward Isaac Cuenca had agreed a one-year contract.
The 23-year-old ended an injury-hit spell at Camp Nou having made only 30 appearances since his debut in October 2011.