The 61-year-old left his previous job as head coach of the Republic of Ireland - his second stint in the role - in April. He departed the Blues after five and a half years in April 2018.
A statement released by APOEL, who are currently seventh in the Cypriot first division, said: “The company APOEL Football (Public) Ltd announces the beginning of its cooperation with coach Mick McCarthy.
"The collaboration lasts 19 months until May 2022. Assistant coach Terry Connor will be added to the coaching staff.
"We welcome both of them to APOEL and we wish them to immediately help the team return to good and substantial performances so that it can claim to the end its goals which are to win titles.”
Among the playing staff at APOEL are ex-Sheffield Wednesday striker Atdhe Nuhiu and one-time Middlesbrough full-back Emilio Nsue.
I know the last year or so wasn't great but i don't get the amount of hatred and negativity towards Big Mick - he came in saved us from League 1 and had us challenging for the play offs for 3 years in a row.
I don't expect everyone to love the man but at least lets give him a bit of respect hey ?
He was the right guy and the right time for us despite his football being ten or more years out of date and I wish him and TC well. He also exposed our owner when he left which I kinda thank him for as well
I’m sorry, this man worked magic with the resources he was given, yes it got boring, yes our aim became survival mid table. Worked really well when we changed it to hurst!! We are not in the 80’s!!! We have no right to be in the prem at this moment. We are playing youth and it is amazing how well we are doing. I wish them both the best, I believe they tried the hardest they could, with what they had