Ashley Giles has left his role as Warwickshire director of cricket to take over as England one-day international and Twenty20 head coach.
The former England player will report to team director Andy Flower, who will focus on the Test side.
The 39-year-old, who is also an England selector, led Warwickshire to the County Championship in September.
"I am delighted to be given an opportunity to coach at international level," said Giles
"I have worked closely with Andy in recent years as a selector and am looking forward to continuing to work together and to build on the progress that has been made with the ODI and T20 sides in recent years."
The former England off-spinner took 143 wickets in 54 Test appearances for his country between 1998 and 2006.
After leading Warwickshire to their seventh County Championship, Giles said he still had "a lot of work to do" for the club at which he spent his whole domestic playing career.
However, he will now take charge of the one-day side for the first time against India in January, before leading the team on the New Zealand tour in February.
The former Bears director of cricket will then turn his focus to the 50-over Champions Trophy at home next summer.
An England and Wales Cricket Board statement said Flower would have "accountability for the results of England cricket" and would also continue to tour with the England Test side during both home and away series.
However, the team director will no longer be responsible for the day-to-day leadership of the England ODI and T20 sides.
Giles will take over that duty and with Flower will also help develop playing strategies to "move England cricket forward in all formats of the game".
Giles told BBC Sport the restructure had happened quickly but would strengthen English cricket: "We first started talking about it about a month ago but certainly most of it has happened in the last few days.
"It's a huge amount of commitment for one man to coach all three forms of the game - the pressure that goes with it and the time away from home - the importance is that we try and keep hold of our best people for as long as we can.
"Andy Flower has done a fantastic job for the team and hopefully this will lengthen his career and the careers of coaches down the line, otherwise we're just going to face a situation where you get burnout."
ECB managing director Hugh Morris said: "England cricket has enjoyed considerable success over the past five years.
"In order to build on that success we know that we need to look for ways to evolve and it has become clear that the team director role needs to change if we are to ensure we are utilising the role as effectively as possible."
Giles was appointed Warwickshire director of cricket in 2007 after retiring from playing in 2006 - a year on from winning the Ashes on home soil.
He led the Bears to the county title five years later and Warwickshire bowling coach Graeme Welch, in an interview with the Daily Telegraph in September, backed Giles as an ideal candidate to replace Flower should he ever step down as team director.
Despite initially distancing himself from an England head coach role, Giles will now work alongside Flower.
Giles said leaving Warwickshire would be difficult. He added: "I'm very excited about taking on the new role but I've had some very, very good years here at Warwickshire as a player and as a coach. This has been my home for 20, 21 seasons. It's far easier to leave the team in this position [as county champions], I'm happy I'm leaving the side in a good position, a good state and in good hands."
Zimbabwean Flower, 44, took over as England coach in April 2009 and has masterminded victories over Australia in the last two Ashes series.
Flower told BBC Sport: "I have been in discussion with Hugh Morris for a little while now and they revolved round best use of coaching resources. We believe this is an efficient and effective innovation that we are bringing in.
"It will give both Ashley and I more time when other series are on to be working with specialist players at their counties, while also giving us planning and strategising time also. There is also the added bonus of a better work-life balance."