"It was hard to say no," one-time Socceroos coach Hiddink, 73, told Fox Sports.
Hiidink, who has also coached the Netherlands, South Korea, Russia, PSV Eindhoven and Chelsea, has signed a contract until the 2022 World Cup in Qatar and starts in September.
Curacao, who have never reached the World Cup, is a constituent country of the Kingdom of the Netherlands and plays in CONCACAF.
Round one of World Cup qualifying begins in October.
