Bright, a former army major who is still commonly addressed in football circles by his military rank, was previously national team coach on three separate occasions
He coached the Zebras for two matches in 1997 and again for a single game in 1999.
In 2000 he took over from the German Joachen Figge but left the post a year later.
The 61-year-old won three league titles in Botswana with unfancied Mogoditshane Fighters from 1999 to 2001 and worked in neighbouring South Africa, including 18 months in the top flight with Cape Town club Santos from 2007 to 2009.
Bright was unveiled at a news conference on Monday less than a week before the team host South Africa in their opening African Nations Championship (CHAN) qualifier in Francistown on Saturday.
Butler did not have his contract renewed last month and Botswana appointed his assistant Oris Radipotsane as interim coach for the Cosafa Cup last week, where the Zebras lost to both Zambia and South Africa.
Bright will have his own assistant, Sthandwa Mogwadi with Thabo Motang as the goalkeeper coach.
"Major Bright will be on a three year contract," said a statement from the Botswana Football Association.
"Bright brings with him a wealth of knowledge and experience in the local game and in the international game.
"Coach Bright has won League titles and cups in in the Botswana League and has a vast knowledge of local players," the statement said.
David Bright is returning to take over the helm of the Botswana national team, signing a three year contract on Monday to replace Englishman Peter Butler, who is now coaching at South Africa club Platinum Stars, just over the border.