Domenicali, who led Ferrari’s Formula One team between 2008 and 2014, will take up the post with Lamborghini on 15 March.
"I am very excited to be taking on the challenges of this great legacy," Domenicali said. "It is now my duty to continue the successes that my predecessor Stephan Winkelmann achieved for Automobili Lamborghini."
Domenicali, 50, started his professional career in finance with Ferrari in 1991 and became sporting director of the Formula One team in 1998, eventually taking over as team principal in 2008. He resigned from Ferrari in 2014 and was employed by the VW Group at Audi as vice president of new business initiatives, which sparked speculation that the German brand was lining up an F1 entry.