Frank Pagelsdorf: Manager replaced by Kurt Jara (StuartFranklin/Allsport)

Jara, who steered current premier division leaders Tirol to two Austrian championships in his three-year tenure, takes over from Frank Pagelsdorf who was sacked last month after a string of poor results.

'I simply had to take up this challenge but wish FC Tirol all the best and thank them for three wonderful years,' Jara told a news conference.

'Every day here was a highlight, but I am looking forward to the new challenge in Hamburg.'

Hamburg, who were European champions in 1983, are currently 15th in the 18-team Bundesliga.

Jara, a 51-year-old Tyrolean, said he hoped to ease concern in the German media that he comes from a small footballing nation.

'I hope to be able to prove that even an Austrian trainer can enjoy success,' he said.

The former national team player is the ninth Austrian to take command of a Bundesliga side since the league was established in 1963, and the second at Hamburg.

Ernst Happel coached the northern German side for six years during which they became European champions in 1983 as well as German champions in 1982 and 1983.

'We're losing the most successful trainer that we've ever had in Innsbruck. But there's no point mourning -- we've got to make sure we now find a worthy successor to Kurt,' said Tirol president Martin Kerscher.

Both sides agreed not to reveal details of the cost of Jara's move, but media reports said that Hamburg would have to pay the Austrian club 4 million marks ($1.88 million) in compensation as his contract was to run until 2004.

Jara, who has trained FC Zurich, Grasshopper Zurich, FC St Gallen, VfB Moedlin, Greece's Xanthi and Cyprus' APOEL Nicosia, joined Tirol Innsbruck in 1998 as sporting director and became head coach in 1999.