The 44-year-old spent just seven months in charge of Evergrande, sacked in June 2015, after filling the void left by countryman Marcello Lippi.
However, the Former Italy international and World Cup winning defender makes his way back to Tianhe Stadium after leaving Tianjin Quanjian, where he guided the club to third place in their first season in the CSL, having achieved promotion in 2016.
“After discussion, we have decided to appoint Fabio Cannavaro as the head coach of Guangzhou Evergrande Taobao Football Club,” seven-time reigning CSL winners Evergrande said in a statement.
Evergrande owner Xu Jiayin added: “Our target next year is to claim the club’s eighth successive title and the treble. We want to win the CSL, the AFC Champions League and the FA Cup.”
Cannavaro returns to Evergrande as a replacement for Luiz Felipe Scolari.