Valverde has been the reported front-runner for the job for some time and he last week stepped down as Athletic Bilbao boss.
He replaces Luis Enrique at the Nou Camp, with the Spaniard calling time on his tenure after three years.
President Josep Bartomeu confirmed the appointment, stating: "A new era has begun." Valverde is due to be formally presented on Thursday.
Bartomeu added: "He has ability, knowledge and experience. He promotes the youth players and he follows the Barca way"
The 53-year-old Valverde is a former Barca player, helping the club win the UEFA Cup Winners' Cup and Copa del Rey during two years at the Nou Camp under Johan Cruyff.
His managerial career has included spells at Espanyol, Olympiacos, Villarreal and Valencia
Barca have been searching for a new boss since Enrique announced in March that this would be his final season, and his last game in charge was Saturday's Copa del Rey final victory over Alaves.
That was the ninth trophy Barca had won during the 47-year-old Enrique's three years in the hotseat, which included league and cup doubles in 2015 and 2016.
Barca were unable to make it a hat-trick of doubles this season as they finished runners-up in LaLiga to Real Madrid, while in the Champions League they were knocked out at the quarter-final stage by Juventus.
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