Bilic succeeds Zlatko Dalic, who stepped down after nine years in charge following the World Cup, marking the 57-year-old's second spell as Croatia coach after leading the team from 2006 to 2012.
At his unveiling, the coach stressed that he would not pressure the AC Milan midfielder but instead approach him with respect.
The new manager hopes to convince Croatia's captain and record appearance holder to continue representing the national team despite uncertainty over his international future.
"My first step is to set up a headquarters that still needs a few adjustments. The second is to talk to the players, especially with Luka Modric,” Bilic said.
We all know who Luka is. The decision is entirely his, given what he represents both for football and for the national team. He is much more than the best player in our national team's history.”