Speaking of his appointment, the Scotsman said: "I believe we can be very successful and I look forward to the excellent support I know we'll get from all the thousands of fans.
"I've been very impressed with everything around the club and I share the ambition of (chief executive) Phil Anderton, the chairman (George Foulkes) and Mr Romanov."
Hearts Chairman George Foulkes added: "We are delighted to be in a position to bring George to Hearts. His track record in management is outstanding, and bringing him here is a significant coup.
"We have taken our time to find the right man, and, in so doing, have attracted a manager of real standing within the game who has a tremendous record at clubs like Ipswich Town and Derby County.
"We have every confidence that George Burley will take this football club forward into an exciting new era, both on and off the pitch."