In a statement on Twitter, the club announced the capture of the Serbian coach, who immediately takes over from Edward Odoom.
Papic recently met with Hearts’ Board Chairman Togbe Afede XIV and club director, Vincent Sowah Odotei to discuss his contract.
Although details of the contract have not be revealed, he was handed the job after convincing the club’s hierarchy.
Papic was present when at the Accra Sports stadium when Hearts of Oak lost to Inter Allies over the weekend.
The 60-year-old is arriving for his second stint with the Phobians, having managed the club in the 2008/09 season.
He last managed Eswatini and previously had stints with South African clubs Martizburg United, Polokwane City and Chippa United.
Papic will hope to use his experience to guide Hearts back to the summit of Ghana and African football after years of underachievement.
The Phobians haven’t won the league in 11 years, while they have also failed to lift the FA Cup since 2000.
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