Kompany joined Anderlecht from Manchester City in 2019 as player-manager and now takes over from Franky Vercauteren, who had been handling coaching duties, in a purely managerial role.
“I want to fully commit to my role as a coach and need 100% of my time and focus for it. That’s why I’m quitting as a football player,” said Kompany, who enjoyed a trophy-laden 11-year spell in England with City.
“Our ambition and our hunger remains the same. I want to stay with the club for at least four seasons and prove that Anderlecht can play a modern style of football, with results.”
Kompany’s first game in charge will come on Sunday as Anderlecht take on Mouscron.