The 63-year-old replaces Mauricio Barbieri, who was sacked in late June after the club’s poor start to the Brazilian Serie A season, a Xinhua report said.
Diaz will be joined by assistant coaches Emiliano Diaz and Juan Romanazzi, the Rio de Janeiro outfit said in a statement.
Vasco are currently 19th in the 20-team standings with just two wins from 14 games so far.
Capped 22 times for Argentina’s national team between 1979 and 1982, Diaz began his managerial career with River Plate in 1995. He has since had spells at Mexico’s America, Brazilian side Botafogo and Paraguay’s Libertad, among other teams.
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