Cherundolo, who has spent the past year as coach of LAFC’s United Soccer League affiliate Las Vegas Lights, replaces Bob Bradley, who left the club in November after four years in charge.
The 42-year-old Cherundolo moved into coaching after a 15-year playing career with German club Hannover 96.
The former right-back won 87 caps for the United States, and appeared in World Cups in 2002, 2006 and 2010.
“We know what works for LAFC and also what works in MLS, and Steve has a unique blend of international and domestic experience at the highest levels that matches those needs,” LAFC general manager John Thorrington said.
Cherundolo, who obtained a coaching license from European governing body UEFA in 2020, said he was relishing the chance to test himself in MLS.
“Having been a part of the club for the past year, I was able to see firsthand that the fans, city, and organization are all extraordinary,” he said.
“Furthering the club’s endeavors on and off the field are my main focus and I can’t wait to get started.”