Hütter succeeds Albert Riera at Frankfurt, who was dismissed as head coach earlier this month.
The 56-year-old's most recent position came at Monaco, whom he guided to consecutive second and third place finishes in Ligue 1 - securing UEFA Champions League qualification in the process - before his dismissal in October 2025.
Prior to that, Hütter spent the 2021/22 season at Borussia Mönchengladbach, where his side secured a top 10 finish in the Bundesliga and memorably defeated Bayern Munich 5-0 in the second round of the DFB Cup.