It's a gamble by Flavio Briatore who has overlooked Gareth Ainsworth for the role.
"Paulo is a very good appointment for this football club," said Briatore. "I have been keeping track of his work for the last few months and he is the right man for our project.
"He has great experience after working with the Portuguese national team and he is part of the new generation of coach. He has worked with some of the world's best players and we are excited about having him.
"His football career was highly impressive and he has great knowledge of the game. After five years with Portugal, he is ready for a new challenge and I am delighted he has agreed to join us."
Sousa was previously working under Luiz Felipe Scolari with the Portuguese national side before Big Phil, took the Chelsea job.
Ainsworth will remain part of the backroom team at Loftus Rd.
"It is an honour to be part of this project. I have always wanted to work for a big club and I am very excited about the opportunity to work for Queens Park Rangers," he told www.qpr.co.uk.
"I have great belief in my ideas and my coaching ability and I firmly believe I can achieve the objectives set by the management.
"I believe in playing positive, attacking football. To achieve positive results you have to maintain a focused outlook and my team will aim to do this, both for ourselves and for the fans.
"I am looking forward to the challenge that lies ahead."