Hick will work with Australia A and Under-19s, having previously been employed as a consultant coach.
Zimbabwe-born Hick, 47, played 65 Tests for England and retired from playing for Worcestershire in 2008.
"I'm excited about the chance to work with young Australian talent and assist in their development," Hick said.
"Over the years I have developed a huge amount of respect for Australian cricket and the Baggy Green cap.
"This is going to be a great challenge for me and one I am really looking forward to."
Source: Cricinfo
Hick replaces former Australia batsman Stuart Law, who vacated the position to become head coach of Queensland following Darren Lehmann's appointment as Australia coach in June.
Cricket Australia general manager of team performance Pat Howard believes Hick will become an asset in developing the next generation of international stars.
"Graeme is a highly regarded former international batsman. It is fantastic that we could secure his services full-time," Howard said.
"His main role will be working with our development teams including Australia A and Under-19 players.
"He will also provide a dedicated batting resource to all state players and Australian players who come through the Centre of Excellence at any time during the year.
"Graeme knows what it takes to compete at the top level and has had many years' experience playing in different conditions, which will be vital to the development of our young batters."
Hick made his England debut in 1991 before retiring from international cricket in 2001 with a Test average of 31.32. He averaged 37.33 in 120 one-day internationals.
In his 25 years playing first-class cricket, Hick scored 136 centuries and 41,112 first-class runs at an average of 52.23.
Former England and Worcestershire batsman Graeme Hick has been appointed as high performance coach of Cricket Australia's Centre of Excellence.