The 42-year-old steps up from the under-19 side, which he has been in charge of for two years. He was previously coach of the under-17s and was first team assistant coach under several managers between 2012 and 2014.
He also played for the club between 2005 and 2011, being part of the team that won promotion to the Bundesliga in 2010. He retired in 2012 after a second with the second team.
Schulz had been the favourite for the role, especially after Daniel Thioune, another reported target, opted to join bitter rivals Hamburg instead.
He replaces Luhukay, who had been unpopular amongst players and fans. The Dutchman left after the conclusion of a season that saw the team finishing 14th and just two points clear of the bottom three, well below expectations.
Sporting director Andreas Bornemann said that he had “felt a lot of passion and commitment” from Schultz during discussions. He added that Schultz is “a young coach who knows the club,” and plays a style of “active, offensive football.” During his time with the youth teams, he has also “showed that he can develop and stablise teams,” said Boremann.
“I had no doubts about accepting this offer,” said Schultz himself. “After last season, we are of course going into the new season with a certain humility, but also with clear ideas,” he added. “I’m looking forward to my new team and can’t wait to work with the boys to develop something that makes our fans happy.”
Schultz’s appointment has been received positively, compared with recent under-whelming appointments by the club. His experience with the younger age teams should help in developing the youngsters brought through under Luhukay as well.
Decisions are now pending on his support staff, with André Trulsen, Mathias Hain and Markus Gellhaus all out of contract. The Hamburger Morgenpost reports on Sunday that goalkeeping coach Hain, a former team mate of Schultz, is though set to stay.