Olympiakos announced his appointment on the club website but gave no contract details. Silva is rated as one of his country's top young coaches, after winning the Portuguese Cup last season in what was his first and only campaign at the club, following a three-year spell at Estoril where he began his coaching career.
He replaces countryman Vitor Pereira, who lasted just six months at the Georgios Karaiskakis stadium before being sacked by controversial owner Vangelis Marinakis.
The 46-year-old Pereira led Olympiakos to a Greek league and cup double but was shown the door in June when it was reported he held talks with Scottish club Rangers about the prospect of taking over as coach.
Olympiakos won its 42nd Greek league title and fifth in a row in April before clinching the Greek Cup for the 27th time when they beat Skoda Xanthi 3-1 in the final at the end of May.
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