The 52-year-old Winnipeg native is the new head coach of the NHL team.
Krueger spent the last two seasons as an assistant under former Oilers head coach Tom Renney.
Krueger played and coached in Europe before leading the Swiss national team from 1997 to 2010.
He becomes the 11th head coach in franchise history.
The Oilers finished 29th in the 30-team league last season with a 32-40-10 record.