The 44-year-old has replaced Cesare Prandelli at the helm following his resignation after a disappointing World Cup in Brazil.
Conte, who will earn in the region of £2m per year, was touted for the role by president of the Italian Football Federation (FIGC) Carlo Tavecchio on Tuesday.
An FIGC statement read: "President Tavecchio and Antonio Conte spoke directly by phone this morning to define the final aspects of the collaboration that will bind Antonio Conte to the FIGC until July 31, 2016.
"The new coach shared in the president Tavecchio's vision to revitalise the national team and the project of training of new Azzurri players, and has a strong commitment towards the technical sector as coordinator of the youth teams."
Conte won three successive Scudetto titles for the Bianconeri prior to quitting his post in Turin earlier this summer.