The club made the announcement via their official twitter handle.
The Argentinian, had been out of the game since leaving Spurs in November 2019.
Pochettino, 48 Thomas Tuchel, who was sacked by the club in December despite leading the club to the French title and the Champions League final last season.
This appointment now marks a return for Pochettino to one of his former clubs, having made 95 appearances as a player for the French outfit between 2001 and 2003.
He has signed a contract until the summer of 2022 with the option of a further year.
"I am really happy and honoured to become the new coach of Paris St Germain.
"As you know, this club has always held a special place in my heart. I have wonderful memories, especially of the unique atmosphere of the Parc des Princes.
"I return to the club today with a lot of ambition and humility, and am eager to work with some of the world’s most talented players," Pochettino said.
Paris Saint-Germain is pleased to announce the appointment of Mauricio Pochettino as it's new head coach. The Argentine has signed a contract with the club from the French capital until 30 June 2022, with an option for an extra year.https://t.co/VPIE35lTYT
— Paris Saint-Germain (@PSG_English) January 2, 2021
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