Back in Europe, Halilhodžić was announced as the new coach of Croatian champions Dinamo Zagreb on 16 August 2010, signing a two-and-a-half-year-long contract. He came in to replace club legend Velimir Zajec, who had been fired after being knocked in Champions League qualifying on penalties against Moldovan club Sheriff Tiraspol. Although this meant the club had been eliminated from the Champions League, Dinamo still qualified for the 2010–11 UEFA Europa League, and Halilhodžić was tasked with successfully guiding Dinamo's European campaign while continuing their dominance in the national championship.