During his spell in charge of Derry, Higgins led the League of Ireland Premier Division side to success in the 2022 FAI Cup final.
He has confirmed that Conor Loughrey will join his backroom team.
Speaking about his appointment, Higgins said: "I'm honoured to be taking on this role at a club that means a great deal to me. This is a club with ambition, with passionate supporters, and a proud history.
"I'm excited to get started, to meet the players and staff, and to build something that brings success on the pitch and pride off it. The immediate focus is the play-offs — and we'll give everything to finish the season strongly.
"I'm also delighted to be bringing Conor Loughrey in alongside me. He's someone I trust and value highly — he'll add real energy and detail to the coaching team."
Executive Chairman and majority shareholder Henry Ross commented: "We're excited to welcome Ruaidhrí to Coleraine at a key moment for the club.
"This is an important appointment made with both the short term and long term in mind. Ruaidhrí has my full confidence, and we believe he's the right person to lead us into this next chapter."