Wael Sawan will take over from Ben van Beurden, who is due to step down at the end of this year after a decade in the job.
The 48-year old was seen as the frontrunner for the role.
Sawan moves up from his current role as head of Shell's renewables and gas business.
His hire comes as Shell aims to go net zero by 2050.
The energy major first resisted calls to firm up its greenhouse emission targets.
But, since 2017, and under pressure from environmental activists, it has gradually set more ambitious goals to tackle global warming.
Sawan said in a statement that the company would be disciplined and value focused.
Analysts at Credit Suisse said they expect the new CEO's appointment to have a limited impact on Shell's strategy.
Sawan will take over on January 1st next year.
