The 55-year-old former Wallabies coach succeeds Mario Ledesma who quit last month after the Pumas suffered a 53-7 defeat by Ireland in November.
“I feel honoured to have been chosen to take over from Mario. I admire the Argentine players. My family is very happy for this opportunity to lead the Pumas,” said Cheika who had previously worked alongside Ledesma in an advisory role.
Cheika is currently in charge of Japanese club side, Green Rockets Tokatsu.
In a rollercoaster career, he coached Australia from 2014-2019 and also had a spell in charge at Irish province Leinster, with whom he won the European Cup, as well as guiding the Waratahs to a Super Rugby title.
“A month ago we accepted the resignation of Mario Ledesma and explained that we were going to have a selection process for a head coach who would accompany us until the 2023 World Cup,” said Argentine rugby federation (UAR) president Marcelo Rodriguez.
“The UAR identified Michael Cheika as our best candidate for the position.
The Pumas will begin their 2022 international schedule in July with a three-Test series at home to Scotland.
Argentina have a tough pool at 2023 Rugby World Cup
At the 2023 World Cup in France, Argentina are in Pool D with England, Japan, Samoa and a team from the Americas qualifying zone.
By Garrin Lambley © Agence France-Presse