Everton boss Roberto Martinez has said he is not looking to replace Samuel Eto'o before the end of the transfer window.
Dundee United defender Keith Watson has joined Hibernian on loan until the end of the season.
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.