The former Manchester United man has penned a three-year contract at the Stadium of Light, succeeding Scottish tactician Ricky Sbragia.
Sunderland president Niall Quinn heaped praise on Bruce after the deal went through, saying he is capable of leading a turnaround in the club's fortunes.
"Steve will bring a professionalism and strength of character to this club that will really help to bring us forward to where we all want to be," Quinn told the Black Cats' official website.
"He knows more than anyone what football means to people of this region and I'm confident that he will be able to instill into our players exactly what it means to play for this football club."
The deal also included the arrival of Wigan assistant manager Eric Black at Sunderland.
Potential Destination
With Bruce taking charge of Sunderland, the club have become a potential destination for Egyptian striker Mido.
The towering international joined Wigan on a six-month loan deal from Middlesbrough in January, having scored two goals in the second half of the season.
Mido is widely expected to seal a new move this summer, given that Middlesbrough were relegated to the first division.
Bruce expressed his admiration for the former Roma player on more than one occasion, and could well consider landing him at Sunderland.
"By the time Mido gets 100% fit the season will be over, but he's certainly getting fitter," the 48-year-old coach told the Evening Post in April when he was still in charge at JJB Stadium.
"We'll have to sit down at some point, see where Boro are and what their situation is regarding Mido.
"I think you can see why I like Mido. He's trained hard since he's come here, done everything he possibly can to get fitter.
"His fitness levels are getting better, and the way he led the line against Arsenal was terrific.
"If he continues playing like that, of course we'd be interested in taking him, but he's still a Middlesbrough player."
The Best
Mido was also in awe of Bruce's managerial skills and experience, which suggests he would accept a Sunderland offer should he receive one.
"I've worked with a lot of good managers of different nationalities during my career. But in my opinion, Bruce is the best I've worked for," Mido told the Wigan Evening Post a couple of months ago.
"I've played in quite a few countries for some big clubs, and judging with that experience, Steve has been doing everything right.
"His training and management is excellent, and he gets on well with the lads and that is what you need from a manager."