Chappell - who played 87 Tests, 48 as captain, and 74 One-day Internationals - will vacate his current role as CA's Centre of Excellence Head Coach in Brisbane to take the new, Melbourne-based role.
Andrew Hilditch will continue to chair the National Selection Panel (NSP) and Chappell will join as one of its four members.
CA general manager Michael Brown said he was delighted that a cricket person with Chappell's life-long depth of experience and expertise in elite cricket was able to take the new role.
"We began a detailed review of our cricket pathway program more than four years ago and this appointment is the final step in that comprehensive process," Mr Brown said.
"Greg will work closely with the State cricket talent development managers and with the national selectors in a system that now gives us a tightly integrated, national talent identification and management system across all Australian cricket.
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