He has previous links with the club having brought Stuart Holden over to England to sit on the Burnley bench before signing him for Bolton and club president Chris Canetti said: "He brings a wealth of experience. Most importantly, I can feel his will to win and know that he is motivated to successfully lead us into the next phase of our club's future."
General manager Matt Jordan added: "His top level experience, character, passion and ability to lead a group will be key factors as the team and club continues to evolve. He has a true respect and appreciation for the game in this country and Major League Soccer, which was extremely important for us as a club moving forward."
Coyle (pictured above leaving Milton Keynes and about to fly to Scotland), who has not confirmed whether he will play for the reserve team, said on his appointment: "It is nice to be wanted by a fantastic club and I feel we have a great opportunity to put a team on the pitch that is pleasing on the eye and can win games.
"I've been watching Houston Dynamo for many years and I know the atmosphere of the supporters. The league is thriving and the opportunity to join a big club like the Dynamo is very exciting to me."
He added: "For me it was just a terrific fit and a great challenge. It's going to be one of the biggest leagues in world football and anybody in the game wants to be involved at a high level. MLS certainly is and I think it'll continue to progress.
He said: "I won't force systems and styles on players that don't suit their strengths, so I need to assess the group we've got, but I think we'll certainly be looking to pass and move that ball, it's something that we're going to work very hard at.
Coyle concluded: "Anyone will tell you I'm quite a humble guy but I certainly know what I'm good at and I'll look to try and impart that knowledge and experience and the qualities I have on anybody I come into contact with.
"We'll try and build something with longevity, try and put a winning team on the park that'll entice fans to come. We'll try and play a brand of soccer that everybody enjoys watching but equally it can be a winning one."
Get the bingo cards out Houston - eyes down!