Burley then went onto very successful management spells with Derby County and then Hearts, leaving on both occassions after a falling out with the respective chairmen.
Of his new post, which is officially as 'head coach', due to Sir Clive Woodward's complicated position, George said:
"I am very pleased to come on board at St Mary's and I am looking forward to taking my first game at Vicarage Road on Boxing Day.
"Southampton have an exciting young team and I believe that they should, and can, be much higher in the Championship table than they are. It's my job to make sure that this happens."
Earlier in the week Burley was being linked with a shock move to take over at Carrow Road and a few Town fans will be relieved to see him making the decision to take on the role at St Mary's.