Darren Ferguson has been named manager of Peterborough United on a four-and-a-half-year contract, just 14 months after leaving by mutual consent.
The Scot, who led Posh from League Two to the Championship during his previous three-year spell with the club, was sacked by Preston two weeks ago.
He held talks on Tuesday with chairman Darragh MacAnthony and stayed to watch the 2-1 League One win over Brentford.
"I've actually missed the place," Ferguson told BBC Radio Cambridgeshire.
"I had a hard 12 months at Preston and I'm glad to be back.
"I don't know if I've lost the trust of the fans, we'll find out, but the fans enjoyed it [his last spell].
"People say you never go back, I don't believe in that. We're ambitious and we want to get into the Championship."
Ferguson, son of Manchester United boss Sir Alex, left London Road in November 2009.
At the time MacAnthony believed the former Wrexham midfielder was being distracted from his job by interest from other clubs.
After his departure the Scot was out of work for almost two months before taking over at Preston in January 2010.
He won only 13 of his 49 games in charge at Deepdale and left in December with North End bottom of the Championship, the same position in which he had left Posh only 13 months earlier.
But his memories of Peterborough, who he joined as player-manager in January 2007, will be predominantly good ones.
After leading Posh to promotion from League Two in is his first full season in charge, he repeated the feat a year later to secure a place in the Championship, and departed having won 73 of his 145 games at the helm.
Gary Johnson parted with Peterborough by mutual consent on Monday.
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