France's 1998 World-Cup winning captain left Olympique Marseille  almost a week ago and replaces Blanc, who quit following the national side's Euro 2012 quarterfinal exit.
"Noel Le Graet, president of the French Football Federation, and Didier Deschamps have finished their discussions and have reached an agreement for the nomination of Mr Deschamps as France coach," a FFF statement read.
Deschamps' first job will be to unite an often-fractious squad as they bid to qualify for the 2014 World Cup in Brazil via a difficult group including world champions Spain.
The FFF has summoned four players, including midfielder Samir Nasri who launched a foul-mouthed rant at a reporter, to a disciplinary hearing over misbehaviour at Euro 2012.
Blanc, who took over in 2010 after a dreadful World Cup where the players mutinied, left after his side produced a soulless performance in the 2-0 defeat by eventual winners Spain at the European championship in Ukraine and Poland. (ANI )