Afridi identified Butt as the ideal man to take over
Salman Butt will take over as Pakistan captain following Shahid Afridi's retirement from Test cricket.
Afridi announced his decision to step down on Friday, after Pakistan's 150-run loss to Australia at Lord's.
Butt, 25, was confirmed at a meeting in London on Saturday between Pakistan Cricket Board chairman Ijaz Butt, the team management and senior players.
He will lead the side in the second Test against Australia in Leeds and the following four Tests against England.
Wicket-keeper Kamran Akmal has been named as vice captain, while the PCB statement added: "The matter regarding Younus Khan and Mohammad Yousuf's inclusion in the team was also discussed but was deferred."
Younus and Yousuf were banned indefinitely for having a "bad influence" on the team during last winter's tour of Australia but Younus's ban was recently overturned on appeal.
Left-handed opener Butt was Pakistan's leading scorer in both innings at Lord's with 63 and 92.
Afridi said on Friday that Butt, who has now played 28 Tests, should become captain.
"Salman is showing his maturity," Afridi explained. "He's good enough to take over this team as captain."