In a break from previous lengthy deals for managers, the English Football Association only handed Allardyce an initial two-year contract through the 2018 World Cup after securing his release from Premier League club Sunderland.
The 61-year-old lost out to Steve McClaren when he first applied for the role 10 years ago.
Allardyce's first competitive match will be in Slovakia on 4 September as England begin their qualifying campaign for the 2018 World Cup.
Among fans there was a mixed reaction ranging from scarcely hidden contempt to confidence that Allardyce would restore the fight and vim to the England side that looked shot when it trailed 2-1 to minnows Iceland in their Euro 2016 last 16 clash last month.
Jose Mourinho has previously tipped "Big Sam" as the new England manager, and vowed to help him by promising he will "prepare the players for him, try to have the English players always available in a good condition to help him (Sam)".
FA officials spent the past two days thrashing out terms with the Black Cats after deciding Allardyce was the man they wanted to replace Roy Hodgson.
"I'm sure he's going to be a success", Davies, who won a solitary England cap under Capello, said.
Former Arsenal and England defender Kenny Sansom said Allardyce's no-nonsense style and frank way of speaking would be a strong weapon to possess in the England job when dealing with players with big egos. "Above all, we have to make the people and the whole country proud".
The FA also spoke to Bournemouth manager Eddie Howe and United States of America coach Jurgen KIinsmann, as well as Steve Bruce, who yesterday quit Hull.
"His excellent managerial credentials, including his ability to realize the potential of players and teams, develop a strong team ethos and embrace modern methods that enhance performance, made him the outstanding choice", FA chief executive Martin Glenn said. We could not help but be energised by his personal perspective on England's future. "It doesn't matter how intelligent you are, how much education you've got, you'll only get there on work rate".
Sam Allardyce has never won a major trophy but did win promotion to the Premier League with Bolton and Newcastle.
"The focus of everyone at Sunderland AFC now is on moving forward quickly and decisively, with the appointment of the club's new manager to be confirmed at the earliest opportunity".