The position had been vacant since December 2022, when Ramesh Powar was removed as part of BCCI's "restructuring module"
"This is a huge responsibility and I look forward to working closely with talented players and providing them with the right preparation and guidance to excel," Muzumdar said in a BCCI statement.
"The next two years are extremely important as two World Cups are scheduled in the period. Together with the coaching and support staff, we will look to tick every box and give ourselves the best chance to succeed."
The statement added that the three-member cricket advisory committee of the BCCI had interviewed the shortlisted applicants for the position and unanimously recommended Muzumdar for the role.
The position had been vacant since December 2022, when Ramesh Powar was abruptly removed as part of BCCI's "restructuring module" two months ahead of the T20 World Cup in South Africa.
Since then, Hrishikesh Kanitkar has been in the top job in an interim capacity, overseeing the team for the home T20I series against Australia in December last year, the tri-series in South Africa, the T20 World Cup earlier this year as well as the Asian Games
Muzumdar has been an active coach since he called time on a 21-year first-class career during which he became one of the highest run-getters in the Ranji Trophy.