Queensland Premier, Peter Beattie, said General Cosgrove would visit Innisfail which bore the brunt of Cyclone Larry which hit the region on Monday.
General Cosgrove was appointed to the role following mounting criticism of the government’s slow response to the huge storm which left thousands of people homeless.
The storm damaged or destroyed thousands of homes and wiped out hundreds of millions of dollars worth of crops in one of Australia's prime agricultural areas.
General Cosgrove, 58, retired from the army in July after a distinguished career during which he led international peacekeeping forces in East Timor in 1999. He was named chief of the Australian Defence Force in 2002.
Great Australian
On announcing the appointment, Premier Beattie explained General Cosgrove’s reasons for taking up the post, saying "He's doing it because he's a great Australian."
He declined to reveal how much the former military leader will be paid for the job which is expected to take at least six months but he stressed that he was not doing it for the money.
General Cosgrove will maintain an office in north Queensland and also travel around as part of his work.
Mr Beattie said he had consulted with Prime Minister John Howard over the appointment announced tonight.
General Cosgrove is expected to name the members of the Cyclone Larry recovery taskforce on Friday.
Repeat of history
General Cosgrove's appointment echoes that in 1974 of Cyclone
Tracy relief chief Major-General Alan Stretton, who has criticised the
aid and rebuilding effort claiming there had been a lack of leadership.
"I saw a lot of people complaining to the Premier, well they've got to be kept informed exactly what's happening, when they can expect things to happen and when morale starts to go you're in a sliding situation,” Maj-Gen Stretton, told SBS World News Australia.
Major-General Alan Stretton also warned that the situation could get out of control if there was a failure to update people on the relief and reconstruction effort.
Alan Stretton was appointed Cylone Tracy’s relief coordinator just 24 hours after the disaster but it has taken the Queensland government four days to announce Peter Cosgrove’s role.
Mr Beattie said there had been a plan in place on Tuesday to appoint a taskforce head, but it would not have been practical to send him to the cyclone zone.
Mounting frustration
Many people are tired and frustrated of having to line up for hours to get basic supplies despite the help of the army which has been providing food, water and shelter to cyclone victims.
Army personnel have also helped out in Innisfail, lending their might to emergency crews trying to restore power which may still be down for weeks.
Emergency efforts intensified on Thursday, with hundreds more staff
and officials brought in to help repair damaged homes and distribute emergency cash payments, food and water to victims.
State emergency services, police and army crews also began to target townships outside Innisfail on the remote Queensland Atherton Tablelands.
Relief efforts were hampered by torrential rain, leaving some roads cut by floodwaters and truckloads of vital supplies stranded just outside of Innisfail.
Looming threat
A second storm, Tropical Cyclone Wati, is brewing around 700 kilometres (450 miles) off the Queensland coast, the weather bureau said.
The storm was expected to track the coast, producing gale force winds and large seas but it’s unclear whether it will hit land, the Tropical Cyclone Warning Centre said.