The 51-year-old has signed a contract until the end of June 2018 at the Italian giants, who sacked Frank de Boer on 1 November after 85 days in charge.
Pioli's first game will be the Serie A match against city rivals AC Milan at the San Siro on 20 November.
He is Inter's ninth manager since Jose Mourinho left the club after winning the Champions League in 2010.
Pioli was sacked by Lazio in April and includes Parma and Bologna among the 11 clubs he has previously coached.
He inherits an Inter side ninth in Serie A, 13 points behind leaders Juventus, and bottom of their Europa League group after a 2-1 defeat at Southampton on 3 November.
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