The decision to appoint Appiah, a former Black Stars captain, was taken by the FA’s executive committee after approving the report of the six-man coaching search committee, the GFA said.
Kwesi, who supervised Ghana’s participation at the 2014 FIFA world cup in Brazil, is expected to sign a two-year contract.
He replaces Avram Grant who ended his term as Ghana coach at the end of last February after the Africa Cup of Nations (AFCON) in Gabon.
Appiah previously served as an assistant coach from 2008 to 2012.
He was first appointed Ghana coach in 2012 but mutually parted ways with the GFA following a disagreement.
(With Inputs From Xinhua)