Lustrinelli, 50, arrives fresh from leading Thun to a stunning debut Swiss Super League title a year after their promotion to the top flight.
The former Swiss international replaces Eta, who became the first female coach of a men’s club in a major European league when she took over on an interim basis in April.
Eta, who claimed seven points in five matches to help Union beat the drop, will take over as coach of the club’s women’s side as previously agreed.
German media reported Union will pay around one million euros ($1.1 million) to Thun to release Lustrinelli from his contract.
“Union is a special club with clear values and honest people. I’m highly motivated and looking forward to embarking on a new journey together with the board, the staff, the fans, and of course, the team,” the coach said in a statement.
Union managing director Horst Heldt praised the coach’s style of play and willingness to blood young players.
“Winning the championship with a newly promoted side speaks to his expertise, but also to his ability to lead and inspire a group,” Heldt said.
Lustrinelli served as assistant coach to former Union mentor Urs Fischer, who took the club to the Bundesliga for the first time in 2019 — and completed a stunning rise to qualify for the Champions League four seasons later.
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