Klinsmann, who took over one day after Bob Bradley was sacked, became the first foreign-born coach to lead the U.S. since Bora Milutinovic, who was in charge from 1991 to 1995.
"We are excited to have Juergen as the head coach," said U.S. Soccer president Sunil Gulati in a statement.
"He is a highly accomplished player and coach with the experience and knowledge to advance the program.
"Jurgen has had success in many different areas of the game and we look forward to the leadership he will provide on and off the field."
Despite having three years to run on his contract, Bradley was dismissed after his side underperformed as hosts of last month's CONCACAF Gold Cup, where they lost to Mexico in the final after earlier losing to Panama.
As a player, Klinsmann was one of football's top strikers and enjoyed a 17-year career that included stints in four major European leagues and top clubs, including Inter Milan, Tottenham Hotspur and Bayern Munich.
"I am proud and honoured to be named the head coach of the U.S. men's national team," said Klinsmann. "I would like to thank the U.S. Soccer Federation for the opportunity and I'm excited about the challenge ahead.
"I am looking forward to bringing the team together for our upcoming match against Mexico and starting on the road toward qualifying for the 2014 World Cup."
Klinsmann's first match in charge will be a friendly against Mexico on August 10 in Philadelphia.
