The former Red Devils midfielder, club captain and first-team coach returns to Old Trafford after Ruben Amorim was sacked last Monday following an acrimonious end to 14 underwhelming months in charge.
Carrick has been chosen to lead United ahead of ex-boss Ole Gunnar Solskjaer, who had also been in talks with chief executive Omar Berrada and director of football Jason Wilcox about the role.
The 44-year-old briefly stepped in as caretaker manager after the Norwegian was sacked in November 2021 and starts his second stint in the hot seat with Saturday's derby clash against Manchester City at Old Trafford.
"I know what it takes to succeed here," said Carrick, who made 464 appearances for the club.
"My focus is now on helping the players to reach the standards that we expect at this incredible club, which we know that this group is more than capable of producing.
"I have worked with a number of the players already and have obviously continued to watch the team closely in recent years, I have total belief in their talents, dedication and ability to be successful here.
"There is still a lot to fight for this season, we are ready to pull everyone together and give the fans the performances that their loyal support deserves."
Carrick previously took charge of three matches after Solskjaer was sacked.
The former England midfielder won two and drew one of those matches before Ralf Rangnick took charge for the rest of the season.
He was named Middlesbrough boss in October 2022 and reached the Sky Bet Championship play-offs in his first season, but was dismissed last summer.
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