"I am really excited to have the opportunity to work with Boris. He is a true legend, someone who has great tennis knowledge and his experience will help me win new trophies from the Grand Slams and other tournaments," Djokovic said in a statement.
"Becker is a great person, too, and I am sure he will fit in our team in the best possible way."
The Serbian ended the year behind his Spanish arch-rival Rafael Nadal.
Becker is a former world No.1 with six grand slam wins and 64 ATP titles.
The 46-year-old German joins Marian Vajda, Miljan Amanovic and Gebhard Phil-Gritsch on Djokovic's coaching team and will begin working with him as he prepares for the Australian Open, which starts on January 13.
Djokovic said Becker "brings a new fresh approach, and together with Vajda he will make a winning combination."
Becker said: "I am proud Novak invited me to become his head coach. I will do my best to help him reach his goals, and I am sure we can achieve great things together."