Red Star were brought to the brink of administration by years of mismanagement that went hand in hand with the Balkan conflicts of the 1990s and the economic depression in Serbia.
Both Belgrade clubs were heavily funded by the authorities in communist Yugoslavia before the country's bloody break-up but have been left largely to their own devices in the past 20 years, mostly selling talent to richer overseas clubs and drawing as many sponsors as they could.
"The managing board has decided to entrust Stojanovic with the task of getting Red Star back to winning ways and the 43-year-old coach will join the team at pre-season training in their Catez base in Slovenia," the Serbian first division club said on their website.
Stojanovic, who failed to reach Euro 2012 with Slovenia replaced Ricardo Sa Pinto at Red Star after the former Portugal forward quit last Wednesday.
Red Star, who won their last league title in 2007, have had to watch fierce rivals Partizan clinch the last six championships in a row and match their overall tally of 25 national titles.
- Sports & Recreation