Skiles was a member of the very first Orlando Magic roster during the 1989-90 season, and spent five years of his 10-year NBA career with the organization.
Skiles last coached the Milwaukee Bucks from 2008-2013.
The Magic fired Jacque Vaughn in February after two full seasons. He was replaced for the final two months of his third season by James Borrego.
"Scott clearly distinguished himself as a tremendous fit," Magic General Manager Rob Hennigan said in a statement. "Our young roster will benefit greatly from Scott's extensive head coaching experience and commitment to teaching smart, physical, unselfish basketball. We believe in Scott's ability to establish a culture of winning habits and accountability that will help guide our team in a positive direction."
The Magic has one of the league youngest rosters with an average age of 25.4 years.
"As we began our search, our internal discussions centered on finding a head coach with a solid résumé of NBA head coaching experience, great leadership qualities, a motivating communication style, and someone with a strong strategic acumen," Magic CEO Alex Martins said. "We feel Scott brings a balanced approach in all those qualities and we look forward, with great confidence, to him leading our young men in helping us reach our collective goal of sustainable success."
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