Jurcic was sacked within an hour of the December 7 match against former French champions Lyon—Dinamo's worst ever defeat in European competition and one of the largest winning margins in the Champions League.
Zagreb-born Cacic, who has coached several Croatian first and second division clubs in a two-decade long career, moves from Lokomotiva Zagreb.
"Cacic is a great coach and has achieved good results with all Croatian clubs," Dinamo official Zoran Mamic told media.
"He has never won a championship since he did not have a chance to lead Dinamo or Hajduk" Split, he said in a reference to the top flight's long-time rivals.
"This is a great honor and the high point in my career," said the 58-year-old Cacic.
"I believe I can improve (Dinamo's) game and I'm certain that I will succeed."
Dinamo finished bottom of Group D without a point after conceding 22 goals over six matches—also a record since the Champions League competition started in 1992.
Dinamo Zagreb ended the first half of the season top of the league with points, six more than the second-placed Hajduk Split. Lokomotiva Zagreb sit in sixth, 17 points behind the leaders.
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