The former Manchester United winger made 64 appearances for the country between 1991 and 2007, but never managed to reach a major international tournament.
Giggs succeeds Chris Coleman, who resigned in November and subsequently took over at Sunderland, having guided Wales to the last four of Euro 2016 – their first major finals appearance since 1958.
Coleman’s last competitive game ended in a 1-0 home defeat to the Republic of Ireland, which saw Wales fail to secure a play-off place in qualifying for the World Cup in Russia later this year.
Having taken interim charge of United at the end of 2013-14 following David Moyes’ sacking, Giggs remained at Old Trafford as assistant to Louis van Gaal but departed when Jose Mourinho arrived ahead of the 2016-17 campaign.
He has previously been linked with a number of managerial vacancies, including Swansea City, but on Monday the FAW confirmed him as their choice ahead of reported fellow interviewees Osian Roberts, Craig Bellamy and Mark Bowen.
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