The Scot, 40, has penned a one-year rolling contract with the Black Cats.
Upon completing the deal, former Preston and Norwich boss Neil said: "It is a privilege to be Head Coach of Sunderland AFC.
"Everything that I saw from the players this morning made me really confident and gave me belief, so what we now need to do is replicate that on a matchday – when it matters – under scrutiny and under pressure.
"Our task is to try and win as many games as we possibly can and at this moment in time we are focused on this season and this season alone."
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