Sundhage, who also was courted for the vacant San Diego Spirit job, replaces former U.S. Soccer staff coach Jay Hoffman, who was released after the Breakers failed to reach the playoffs for the second successive year.
Sundhage scored 71 goals in 146 international appearances for Sweden before retiring in 1996. She coached at the club level in Sweden and was in charge of several Swedish underage national teams before joining Krikorian's staff.
Charge defenders gave Sundhage much credit for Philadelphia's defensive performance this season. It surrendered 22 goals in 21 games, the least allowed in the WUSA.
Hoffman guided the Breakers to a 14-18-10 record and two sixth-place finishes in two seasons. The club, which possesses dynamic attackers but has been inconsistent defensively, was 6-8-7 in 2002 and went unbeaten at home, but it went 1-8-2 on the road.