It brings an end to speculation over who it will be, with Luis Enrique announcing earlier this season that he would be stepping down at the conclusion of the campaign.
He played for Sestao, Espanyol, Athletic and Mallorca, but his two years with Barcelona between 1988 and 1990, where he played under Johan Cruyff, made an impression with those responsible for choosing Luis Enrique's successor.
"Valverde has the ability, the judgement, the knowledge and the experience", he said.
The 53-year-old has agreed a deal at the Nou Camp to take charge for the next two seasons.
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And he also won 3 Greek titles in 3 seasons at Olympiakos. "In his career he has helped his teams to no less than six trophies, five with Olympiacos and one with Athletic Club". They beat Barcelona 5-1 on aggregate in the 2015 Spanish Super Cup.
Herrera has been one of Manchester United's most consistent players this season and he was named as the man of the match during the Red Devils' Europa League final win over Ajax in Stockholm last week.
Ernesto Valverde is the new @FCBarcelona coach.
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Defender Aymeric Laporte and winger Inaki Williams, who have both been linked with big-money moves to English clubs, became first-team regulars under Valverde.
During the season, Williams said: "He would be a good coach [for Barca], but we want him to remain at Athletic".