Former Bradford City and Plymouth Argyle boss lands role in Scottish Premiership after Morecambe exit
The 48-year-old has vacated his post at Morecambe to seal a return to the club he has previously led on two occasions.
His last stint in charge ended in 2014 and he has since taken the reins at Plymouth Argyle, Bradford and Morecambe.
A release clause in his Morecambe contract was activated, enabling him to make the move to the Scottish top flight.
"He returns following a successful period in England and has led over 700 games as a manager across his career.
"He knows the Highlands and our club well; we look forward to seeing him build on the solid foundations laid by Malky [Mackay] and his staff over the last two years and believe that Derek inherits a talented playing squad that are capable of being successful in the SPFL."