The 46-year-old has had coaching spells across North America and Asia and was most recently assistant coach at women's side Notre Dame Fighting Irish based in Indiana.
Beforehand he was most known for coaching MLS side Vancouver Whitecaps and taking them to the play-offs and led them to the post-season stages for the first time.
Former Hamilton manager Brian Rice was seen as the favourite for the role, but the Bairns have appointed the UEFA Pro Licence coach for his ‘proven ability to rapidly improve his team’s performances’ and his steady level success with an overall win percentage of over 50%.
A club statement read: “The Board of Falkirk Football Club is delighted to announce the appointment of Martin Rennie as our new Head Coach.
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“Martin joins until the end of the season and brings a very strong track-record of success, in both the United States and South Korea. “The Board was particularly impressed by Martin’s proven ability to rapidly improve his team’s performances, which has been a consistent theme throughout his career.”
Rennie was brought up in Larbert and the statement confirmed the head coach already had a level of knowledge about the club.
“As a child he was a ball boy at Brockville Park and has been a huge Falkirk fan ever since. Martin still has family in the area and has completed all of his coaching badges, including the Level 5 UEFA Pro Licence, via the Scottish FA
“We’re sure all Bairns will warmly welcome Martin back home, and give him their full support as we endeavour to turn this season and the whole club around,” it said.