The 45-year-old has signed a three-year deal at the cash-strapped south coast club, who are rebuilding after suffering relegation from the Barclays Premier League last season.
Though Portsmouth faced competition form the also relegated Hull City, they emerged victorious in securing the services of the for English player and Notts County manager.
Cotterill took charge of Notts County earlier this year and led the Magpies to the League Two title before leaving Meadow Lane at the end of the season.
Cotterill, who has also managed Burnley, Stoke and Sunderland, was expected to take over the reigns at Fratton Park as soon as Avram Grant got confirmed as the manager of West Ham United, but with Hull City too vying for his services, it might have taken a little longer than usual. He had also been linked to Coventry City earlier in the summer, but he denied the reports and maintained that Coventry City had contacted him.
Cotterill’s season at Notts County was his best ever, and his record there of 77% win percentage is much higher than his overall average of 45%.
Portsmouth will look to Cotterill to make an immediate return to top-flight football after being dumped out unceremoniously during a season where the had to deal with everything from late salaries to penalized points. The only bright spot was their FA Cup run which ended in the finals.