The official told a news conference the board also appointed former Lokomotiv coach Yury Syomin as club president.
Byshovets, 60, led the Soviet team to gold medals at the 1988 Summer Olympics in Seoul. He was also a manager of the U.S.S.R, Russia, and South Korea national teams.
The former winger scored 15 goals in 39 matches for the U.S.S.R national team.
Yury Syomin, 59, one of the country's most respected managers, left Lokomotiv in 2005 to take over the national team from Georgy Yartsev in a bid to improve its performances, but resigned from the post this year after the team failed to qualify for the finals of the 2006 World Cup in Germany.
Byshovets, who signed a two-year contract, said the board set high-profile targets for the team, which finished third in the 2006 regular season.
"We must be ready to meet the targets of winning Russia's championship and restoring the team's European status," he said.
Lokomotiv won the Russian Premier League in 2002 and reached UEFA Cup Winners' Cup semifinals twice, in 1997-1998 and 1998-1999.
This year Lokomotiv lost to semi-professional Belgian club in the 2006/2007 UEFA Cup tournament's first round. The defeat triggered the resignation of Serbian coach Slavoljub Muslin.
