Petrescu, 44, will soon sign a three-year-contract, Dynamo said on their website.
He quit the provincial side from the Black Sea region on Tuesday, saying he needed a "new challenge".
The Romanian replaces former Russia international Dmitry Khokhlov, who was named caretaker coach 11 days ago in place of Sergei Silkin following a dreadful start to the season.
Dynamo, the country's oldest football club, are bottom of the league after losing all four games without scoring a goal and conceding nine.
Dynamo also announced a front office reshuffling, naming former KGB general Gennady Solovyev as the club's new president.
Khokhlov will coach Dynamo in Sunday's league game against Terek Grozny while Petrescu will begin his reign on Monday, the club added.