Armin Veh spoke of his excitement at taking on the "challenging task" of coaching Hamburg after being unveiled at the Nordbank Arena today.

Veh was named as the permanent successor to Bruno Labbadia last night on a two-year deal with Bastian Reinhardt appointed sporting director. Their task is to improve on last season's disappointing seventh-placed finish.

Veh won the 2007 Bundesliga with Stuttgart but his last post was with Wolfsburg, with whom he lasted less than a year before being sacked.

He said today: "I am very happy to take on this challenging task at this great club. I think we have a great chance to achieve something. And while it is a pity the club missed out on Champions League qualification, it could actually be an advantage for us."

Hamburg also announced today that striker Paolo Guerrero has agreed a new four-year contract. His previous deal was due to expire this summer but he will now remain with the Rothosen until 2014.

It is welcome news for the Peruvian, who missed the end of the Bundesliga season after being hit with a five-match ban for throwing a bottle of water at a fan following the 0-0 draw with Hannover on 4 April.

"I am very that I will continue to play for Hamburg," he said. "Hamburg has in recent years become my second home. The last few months have not been easy for me but I have gained confidence from the support of my team-mates."

Veh said: "I am very happy that Paolo has extended his contract. I am confident he will play a major role for us as there are not many strikers around with his quality."