McDermott, who took 291 wickets at 28.63 in 71 Tests, replaces Troy Cooley in the role after Cooley became the Centre of Excellence head coach following last summer's Ashes campaign.
The 46-year-old Queenslander was considered a front-runner for the job after taking on a mentoring role with Australia's quicks during the recent one-day tour of Bangladesh.
Cricket Australia (CA) has called a press conference to announce the appointment at the Centre of Excellence in Brisbane.
McDermott is believed to have come out on top of a CA shortlist of 14 for the job, a list that included South African quick Allan Donald.
McDermott takes over at a promising time for Australia's fast-bowling stocks with youngsters such as Mitchell Starc, Josh Hazlewood, James Pattinson, Peter George and Pat Cummins all coming through the ranks at state level.
Current Test bowlers Peter Siddle, Mitchell Johnson and Ben Hilfenhaus are also all relatively young.
McDermott, who retired from international cricket in 1996, will take over the role immediately.
- AAP
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