The appointment of Belgian was confirmed Thursday night by the federal office of the Algerian Federation Federation.
It was initially reported that Marc Wilmots was going to be the new head coach but both parties failed to agree on a suitable salary.
Leekens' first match in charge will be the World Cup qualifier against Nigeria in Uyo on 12 November.
He succeeds Serbian Milovan Rajevac who resigned after the 1-1 draw against Cameroon on 9 October in a World Cup 2018 qualifier.
During his career, Leekens has coached Anderlecht, Trabzonspor, Lokeren, Belgium, Tunisia and Algeria, whom he worked briefly for in 2004 before leaving for family reasons.
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