Sir Ian has also confirmed his intention to take up this position on his return from India.
The legendary all-rounder, voted as the greatest England cricketer of the 20th century, played 218 times at international level.
He played for Durham’s maiden first-class side in 1992, scoring a century on debut, and ended his distinguished career playing for the county against a touring Australian side one year later.
Botham said: "I am very privileged to be invited to accept the role of Chairman at Durham County Cricket Club but it is important that we all recognise the size of the task ahead.
"I was fortunate enough to play for the club during its first professional season and have always taken a keen interest in the club’s fortunes and many successes.
“As someone who lives locally it is an honour to have the opportunity to contribute to the club’s future, to look forward and to continue to produce the talent that will serve both the county and England well in the years ahead.
"We will work closely with the England and Wales Cricket Board and Durham County Council in the months ahead as we develop a plan to ensure continued success for this great club.”