The Scot takes up the Latics' reins following Roberto Martinez's departure to Everton, and revealed he turned down several job opportunities since being sacked by Bolton in October.
Coyle, 46, said: "I knew when I walked through the doors here that this was the job for me, it gave the impression of a terrific working environment.
"I have had seven or eight opportunities to get back into management but I've been waiting for the right club. I feel that this is the right job and I'm really looking forward to starting work at this fantastic club."
Wigan secured a momentous FA Cup final triumph over Manchester City prior to relegation to the Championship, resulting in a chance for Coyle to manage in the Europa League.
The former Burnley boss added: "In the Europa League we have to make an impression on people and show them what a brilliant club this is.
"The chairman has backed managers in the past to bring players and we need to add to an already talented squad. I'll look to utilise the loan market, but we won't sacrifice quality for quantity, we have to bring the right players in."
Coyle secured some big names in the loan market while at Wanderers, with the likes of Jack Wilshere and Daniel Sturridge impressing during temporary spells.