The 40-year old replaces technical director Brian Bliss at the helm after he acted as the crew's interim head coach following the sacking of Robert Warzycha in September.
"I am excited about the opportunity to join one of Major League Soccer's original clubs. The Crew has a strong history of winning and a dedicated fan base, and I aim to bring a style of play that resonates with our supporters and results that will make the city proud," said new Crew sporting director and head coach Berhalter.
"I look forward to working with Chairman Anthony Precourt, whose passion resonates throughout the entire club.
"I am also excited to work closely with Mark McCullers, as his experience in the League is a valuable resource. I am eager to get started, and my immediate priority is to reach out to the players and share our new vision for the club as we move forward."
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball