Cricket Australia said in a statement that Inverarity, who coached at Warwickshire and Kent after a 23-year career as a first-class cricketer in Australia, will take up the role in time to oversee selection of the team for the first test against New Zealand in December.
Inverarity replaces current part-time national selection panel chairman Andrew Hilditch, who declared himself unavailable for a full-time role.
Earlier this month, Cricket Australia appointed former rugby union international Pat Howard to the newly created role of general manager of team performance.
The creation of that role followed the release of an extensive independent review headed by mining executive Don Argus earlier this year in the wake of Australia s home Ashes loss to England that recommended a major overhaul.
From mid-November, the 37-year-old Howard will oversee the Australia head coach, captain, chairman of selectors, team manager and center of excellence manager.
One of Howard s first responsibilities was to help choose Inverarity, and also to help find a replacement for head coach Tim Nielsen.
Cricket Australia chief executive James Sutherland said Inverarity and the head coach will both report to Howard.
Cricket Australia said the new head coach was now being recruited with the assistance of a Melbourne sports management company, and that foreign-born coaches are being considered. Troy Cooley is Australia s interim coach.