Deschamps, who captained France to success at the 1998 World Cup and Euro 2000, held talks with the French Football Federation in Paris on Saturday.
The FFF has now confirmed his appointment, with the former Marseille boss set to take charge for the first time against Uruguay in Le Havre on 15th August.
A statement on the FFF's website read: "Noel Le Graet, FFF president, and Didier Deschamps have finished their talks and have reached an agreement for the appointment of Mr Deschamps as coach of the France team.
"Noel Le Graet and Didier Deschamps will give a joint press conference on July 9 at 1730 (local time) at the headquarters of the French Football Federation."
Deschamps, who has also managed Juventus and Monaco, inherits a troubled squad yet to be punished for their behaviour at Euro 2012.
The FFF are expected to hand out bans to Samir Nasri, Hatem Ben Arfa, Jeremy Menez and Yann M'Vila, having opened up disciplinary proceedings following a string of offenses during the event.
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