The Irish businessman, who will take up the position on September 1, replaces John Allan, after he resigned in June.
Allan, one of Britain's highest-profile corporate names, is often featured in British media commenting on retail and general business matters. He chaired Tesco for about eight years.
'In Great Shape'
"I’m fully committed to helping Ken [Murphy, CEO] and the Tesco team deliver on this purpose and very excited about the strategic opportunities for growth across the Tesco group," Tesco's incoming chair said.
"I also want to pay tribute to my predecessor, John Allan, whom I have known for many years. John has left Tesco with its business, management and Board in great shape and fit for the future.”
Tesco said that upon the appointment of Murphy, Byron Grote would step down from his role as interim chair and revert to his previous position.
Murphy will step down from his position at British food ingredients maker Tate & Lyle, the retailer said in a statement.
Tate & Lyle in a separate statement said that Warren Tucker, its current chair of the audit committee, will take the role on an interim basis while its board finds a permanent successor.