Thirty-three years after being rejected by Sunderland as a schoolboy triallist, Steve Bruce returned to Wearside tonight and was promptly handed the keys to the manager's office. Sporting a neatly knotted, newly pressed, red and white tie, Bruce reflected that his Sunderland comeback had been well worth the wait and he was now very much in the right place at the right moment.

"It's the perfect job at the perfect time," said the former Wigan manager. "I've been working in management for ten or 11 years for an opportunity at a club like this with a huge fan base. It didn't take much to persuade me to come here, it's a perfect step. This is what I've always wanted, a big club."

The 48-year-old has signed a three-year contract, understood to be worth about £3m a year and, thanks to Ellis Short, Sunderland's billionaire owner, is reputed to have been given a summer transfer budget of £60m.

Small wonder Bruce was making light of his history as a Newcastle United supporter. Born in Corbridge in the Tyne Valley but brought up in Wallsend, he was a St James' Park regular as a child. "I don't think I'll have a battle for hearts and minds [of Sunderland fans]," he said. "I can see no problems. I'm from Newcastle, end of story. I've been away from the north-east for more than 30 years but I'm delighted to be back. The humour of the north people is quite astonishing but unless you're born and bred up here I don't think you realise what football means to the people up here. I'm proud to be Sunderland manager."

Back in 1973 Bob Stokoe, a former Newcastle player, led Sunderland to a famous FA Cup victory over Leeds United and tonight Bruce posed alongside a statue of Stokoe while chatting with a dog-walking fan who gave him a full briefing on his boxer's arthritis. "I knew I was back in the north-east when he told me, straightaway, about his dog," said Bruce. "I hope I can do as well as Bob Stokoe."

Later the new manager flew back to Portugal where he will spend the next few weeks on holiday with his wife Janet and his Newcastle-supporting parents. "My dad was cool about it, though," he smiled. "He just said 'fill your boots, son'."

During a phone call with his former Manchester United manager, Sir Alex Ferguson also urged Bruce – who brings his former Wigan coaches Eric Black, Nigel Spink and Keith Bertschin with him – to take the job.

Niall Quinn, Sunderland's chairman, was simply delighted to land a manager who cost about £2m in compensation paid to Wigan. "Steve is the perfect fit for us and where we are as a club," said Quinn. "He's got all the right ingredients, the mentality and the strength to drive us to where we need it to be. Steve knows all too well what football means in this region. He epitomises what it means to be a football person in the north-east. I look forward to him bringing those traits out on to the pitch. It's the perfect time for both of us for him to be here. I look forward to see Sunderland representing the Steve Bruce philosophy. And there will be funding, he will be backed. We're confident we can bend to Steve's needs."

And that Ricky Sbragia's successor can fulfil Sunderland's aspirations. "We've got some fine players here but there are times when we've been brittle and lacked the right mentality over the past three years," said Quinn. "I believe the missing ingredient has been steel and Steve can give us that. What is unforgiveable in Steve's mind is someone shirking responsibility and not giving 100%."

Bruce was careful to stress that he would "give everybody a chance" before raiding the transfer market but refused to rule out returning to the JJB Stadium for one or two of his former charges. "Wigan may be a small town but they have some very good players," he said before stressing he parted with Dave Whelan on good terms and looks forward to sharing a beer with him this summer.

"A few players at Sunderland will be left aside," he said. "But I want to work with them and give everyone a chance first, at least for a few weeks. There are some good individuals here I look forward to improving and improving mentally. You have to be a certain type of player to play in the north-east, you need a certain mental toughness to handle the supporters up here."