Martin O'Neill, 73, took over on an interim basis following Rodger’s resignation, steadying the ship and closing the gap between them and league leaders Hearts to just two points.
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Nancy, 48, has now joined from MLS side Columbus Crew to become Rodger’s permanent successor, his first managerial job in Europe.
Last year's MLS Coach of the Year will be joined by former Arsenal youth boss Kwame Ampadu, who was Nancy's assistant at CF Montreal and Columbus Crew.
The Frenchman will be thrown into the deep end for his first game, a home fixture against Hearts, knowing a win would see his new side take over at the top of the Scottish Premiership.