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Wright, 37, will assume the role in March after completing a coaching job with Auckland, and will be responsible for team and squad selections across the Senior, Lions and Young Lions teams.
The role was reintroduced by England men's team chief executive of cricket Rob Key after it was removed by his predecessor Ashley Giles.
"It's a huge honor," Wright said.
The right-hander, who played 101 times for England between 2007 and 2014, added: "I am incredibly excited With the Ashes and ICC 50+ World Cup next year I can't wait to get started and try to contribute after what has been a fantastic year for cricket male English."
Giles got rid of the previous selection panel, giving full control to the head coach Chris Silverwood, but Key, who was appointed in April and led a selection panel in the meantime, has declared his intention to return to the role.
Wright will work alongside Key, Chief Performance Officer Mo Bobat, Head of Identification David Court and red and white players- ball coaches and captains to select squads and teams.
Key said, "I'm thrilled to have Luke join the roster.
"With his vast experience of playing in England and abroad as well as his extensive knowledge of county cricket, he will be an important voice player in team selection while helping to identify the next generation of England stars.
"C' is an exciting time for men's cricket in England, but there is a lot of work to be done if we are to build on what has been an exciting year."
Wright will be responsible for all domestic cricket this summer and will be involved in central contract decisions.
He will work closely with Bobat , Court and the scouting network on talent identification, as well as with the scientific and medical team on the availability and programming of players.
The move means Wright has also retired from professional cricket after a 20-year career, having started at Leicestershire before joining Sussex in 2004.
He retired from red-ball cricket in 2019 after scoring 7,622 runs in 144 first-class matches, including 17 centuries. p>
Wright went on to play whiteball cricket and was part of the Sussex T20 Blast team this year.
He finished with a T20 record fine of 8,526 runs in 344 games, with seven centuries, while he also took 79 guiche ts at an average of 32.44.
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