The former Juventus and Italy defender was brought in to replace Claudio Ranieri, who was sacked by the Old Lady two games before the end of the Serie A season.
"It is official. Ferrara is the new coach of Juventus. The adventure continues on the bench for the tactician who led the team in the last two matches of the past championship," read a statement on Juve's website.
Ferrara was competing for the Juventus hot seat alongside ex-club midfielder and current Bari coach Antonio Conte, Roma's Luciano Spalletti and Bordeaux boss Laurent Blanc.
The 42-year-old's appointment came after a dismal and trophy-less season for Juventus with Ranieri, who could only lead the club to third spot in the league.
Since his retirement from football in 2005, Ferrara has been part of Italy's 2006 World Cup winning technical staff before landing a role at Juve's youth academy.