The 60-year-old World Cup winning coach, who was sacked by the west London Premier League club in February, has agreed an 18-month contract with the Uzbek side, who are based in the capital Tashkent.
Scolari succeeds fellow Brazilian Zico, who led Bunyodkor to the league and cup double and Asian Champions League semi-finals last year before quitting in December to join CSKA Moscow.
The Brazilian adds Uzbekistan to his list of exotic management locations following spells in charge of clubs in Saudi Arabia, Kuwait, Japan, England and his native Brazil as well as coaching the international sides of Kuwait, Brazil and Portugal.
The former Chelsea manager said: "Uzbek football is on an upswing right now while Bunyodkor is a very dynamic club with great potential.
"Completion of a new football stadium in the town of Tashkent, which is scheduled for March 2010, will open a new era for the club.
"I know that I am at the right place in the right time."
Scolari was spotted at the weekend in attendance at Uzbekistan's World Cup qualifier against Japan along with compatriot Rivaldo, who, as well as being a member of the 2002 Brazil squad that lifted the World Cup under Scolari in Japan and South Korea, is currently a player with Bunyodkor.
Rivaldo, who joined the club from AEK Athens in August last year, is thought to be earning $14 million dollars per season on his original two-year contract in Central Asia. He has recently extended his deal with a four-year contract.
The club also attempted to sign Barcelona striker Samuel Eto'o last year, with the player confirming he was considering a move to Tashkent.
Scolari will find three other Brazilians on the playing staff in Edson Ramos, Luizao and Joao Victor.