"I'm excited about the future and what we can achieve at Hibernian - it's a great honour to be appointed the new manager of the club," Butcher told the club's official website.
"I've been really impressed with the set-up; from the training facilities through to the stadium, everything is in place and now our goal is to deliver the success on the pitch that everybody wants.
"We want everybody associated with Hibernian - players, staff and supporters - to all pull in the same direction and to implement a winning mindset. This is a big football club with big expectations, but with energy, enthusiasm, desire and focus I believe we can rise to the challenge ahead and win."
His first match in charge will be against St Mirren on Saturday, November 23.