The 60-year-old Italian returns to management over a year after leaving his role with the Saudi Arabia national team.
Mancini takes the reins at Al Sadd, who sit sixth in the Qatari top-flight with 14 points from nine matches, eight adrift of table-toppers Al-Gharafa.
His most successful spell as a manager came during his time with Inter. He led Inter to three Serie A titles, two Coppa Italia crowns and two Supercoppa Italiana triumphs during his first spell at the club between 2004-2008.
He also guided Italy to the 2020 European Championship title and led Manchester City to their first Premier League crown in the 2011-12 campaign.
Mancini was linked with the Nottingham Forest job before the Premier League club appointed Sean Dyche in October.
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