Fernandez set for Montpellier role
Montpellier chairman Louis Nicollin announced last month that current coach Rene Girard would leave the club at the end of the season.
Girard led Montpellier to their first ever Ligue 1 title last term but subsequently failed to agree a new deal.
And Nicollin moved quickly to secure the services of the 59-year-old Fernandez, who resigned at Nancy in January.
"Jean Fernandez will succeed Rene Girard as coach as of July 1," a statement on Montpellier's website said.
Fernandez represented Marseille and Bordeaux during a lengthy playing career and has been a manager since 1985, spending an extensive amount of time in the United Arab Emirates in addition to his several jobs in France.
His most successful stint was at Auxerre, where he was in charge from 2006 to 2011 and led the club to the UEFA Champions League group stages in 2010.
Fernandez was also voted the Ligue 1 coach of the year in 2010.
Montpellier sit eighth in the table and are unlikely to play European football next season.