A highly successful coach of provincial side Canterbury, 46-year-old Stead had a stint as batting and support coach for the Black Caps in the 2016-17 summer.
He joins the side nine months out from the cricket World Cup in England, and with the World T20 in Australia also falling within his contract period.
Stead will start his contract on Sept. 1, his first assignment on tour against Pakistan for test, one-day international and T20 series in the United Arab Emirates starting late October.
“It’s a matter of helping maintain New Zealand’s strong form on the international scene, but also respecting what’s happened over the past four or five years by continuing to push for improvement,” said Stead, who played his five tests for New Zealand in 1999, in an NZC release.
“This is a well-established and high-performing Black Caps side with an excellent captain in Kane Williamson, and a real desire to win series and titles.
“It’s an honour and a privilege to be part of that, and I can’t wait to get started.”
(Reporting by Ian Ransom in Melbourne; Editing by Pritha Sarkar)
