D.C. United officially acquired Bulgarian striker Hristo Stoitchkov on January 27 for a second-round pick in the 2004 Major League Soccer draft.
Stoitchkov, considered one of the greatest players of his generation, will be an assistant coach under Ray Hudson.
The new contract has been finalized over the weekend in Washington.
The contract's financial terms have not been revealed but according to an article in Washington Post Stoitchkov is "playing for pennies" to remain in MLS and acquire coaching experience.
His wife and two daughters will remain in the Chicago area.
At the beginning of January the trade of Hristo Stoitchkov was forecasted in an article of Chicago Sun-Times.
To get under the USD 1.7 M-per-season limit, the Chicago Fire had to trade captain Peter Nowak to the New England Revolution. The article cited general manager Peter Wilt as saying that MLS has been notified that another established player would depart. It could involve a trade of Hristo Stoitchkov, the frequently injured Bulgarian striker, Chicago Sun-Times wrote.