The three-time Premier League winner will kick-start his first steps into management with a three-year deal at the Rams.
The 39-year-old replaces Gary Rowett who left the Rams for recently relegated Stoke City.
Lampard will have the tough task of guiding Derby to the Premier League after they lost in the Play-Off semi-finals to Fulham.
Speaking to Derby's website, he said: “I’ve always wanted to manage a club with a big tradition and history like Derby County, so this is a huge opportunity.
"I have spent considerable time discussing the role and the club’s objectives with the Chairman and board members.
“We want to build on the club’s top six finish in the Championship last season, while at the same time bringing through some of the excellent youth and Academy talent we have at Pride Park.
“This is my first job as a manager, but I’ve worked closely with some of the best coaches in the game and I’m confident in my own abilities and those of the team around me, including the board.
CENTRE GRIND Chelsea legend Frank Lampard names top five toughest midfielders he faced in Premier League
"I know it won’t be easy – managing a football team never is – but I’m really looking forward to the challenge ahead.”
Lampard arrives at the club with a highly-decorated career as a player including three Premier League titles, four FA Cups, two League Cups and a Champions League.
Championship winner odds – provided by Sun Bets
Derby – 14/1
Aston Villa – 6/1
West Brom – 7/1
Swansea City – 7/1
Stoke – 8/1
Middlesbrough – 9/1
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Derby executive Chairman Mel Morris added: "I’m delighted to have someone of Frank’s calibre as our new manager.
“Few players have achieved what Frank has in his career to date.
"He’s a winner, a leader who knows what it takes to succeed and who has the character and charisma to be a fantastic manager for us.”
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