Bush said Mukasey, 66, had the right qualifications for the job
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US President George W Bush has named retired federal judge Michael Mukasey as the replacement for the former US Attorney General, Alberto Gonzales.
Mr Mukasey has presided over a number of high-profile terror trials and is seen as a conservative, analysts say.
Mr Gonzales announced his resignation last month amid accusations that he sacked eight lawyers for political reasons - charges he denies.
The president's nomination for attorney general must be approved by the Senate.
Mr Bush urged the Senate to act quickly. If confirmed, Mr Mukasey will be his third attorney general.
'Clear-eyed'
The BBC's James Coomarasamy in Washington says Mr Bush's nominee is not widely known, but gained wide experience during his years as a federal judge in New York especially in the field of national security.
Mr Bush has continued to support Alberto Gonzales
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Introducing him in the White House rose garden, Mr Bush said Mr Mukasey, 66, had the right qualifications for the job and was "clear-eyed about the threat our nation faces".
"The attorney general has an especially vital role to play in a time of war, when we face the challenge of protecting our people on a daily basis from deadly enemies, while at the same time protecting our freedom.
"Judge Mukasey brings impressive credentials to this task," he said.
Before shaking hands with the president, Mr Mukasey said he was honoured to have been nominated to head the justice department.
"My finest hope and prayer at this time is that if confirmed I can give them the support and the leadership they deserve."
He also said he looked forward to working with Congress to "meet the nation's challenges".
Our correspondent says that by choosing a man who has the reputation for being a conservative but non-partisan judge, Mr Bush appears to have avoided another confrontation with the majority Democrats.
Democratic Senator Charles Schumer of New York was one of the most persistent critics of Alberto Gonzales, but said he saw Mr Mukasey as someone with whom he could do business.
"Judge Mukasey is not a crony of the president," he said.
"Judge Mukasey has a reputation for integrity and that is the most important thing right now."
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