Jose Mourinho insists Diego Costa is content at Chelsea in response to reports linking him with a return to Atletico Madrid.
Jamie Carragher says James Milner might be the next Liverpool captain if he joins from Manchester City.
The 44-year-old, who had been working at Leeds University, will take the reigns of the club who were this season promoted to Norway's top flight.
"I am looking forward to putting my stamp on this job," Deane told the club's official website.
Deane won three caps for England and is famous for scoring the first goal in the history of the Premier League.