Ivankovic, assistant to Ciro Blazevic when Croatia finished third at the 1998 World Cup and coach of Iran at the 2006 World Cup, replaces Serbian Ljubisa Tumbakovic on a two-year deal.
"We're going to get back in the top three and I'm going to make the team more professional," the 55-year-old Croatian, whose second spell at Dinamo Zagreb ended last year, told the club website (www.lnts.com.cn).
Shandong, league and Cup double winners in 2006 and champions again last year, finished the 2009 CSL season in fourth place to qualify for the Asian Champions League.