The former All Blacks hooker said last month he would leave the Hurricanes and Cardiff was mooted as a potential destination with Phil Davies having resigned from the Blues job in March.
"I have met Mark and he was the outstanding coach and person for the role," Cardiff chief executive Richard Holland said in a statement on the club's website (www.cardiffblues.com).
"We believe his long-term vision for the Blues will take us to the next level and achieve our ambition."
Hammett joined the Hurricanes in 2011 and provoked controversy when he launched a clean-out of stalwarts including Andrew Hore and Ma'a Nonu.
The Hurricanes are eighth in the Super Rugby standings but are long shots to make the top six positions for the playoffs.
Hammett was first approached by the Pro 12 club a year ago, he told the Dominion Post newspaper.
"I said it's not the right time, but the way things rolled around, when they knew I was keen to make a move, they got back to me," the paper quoted him as saying.
"It was the right time for them as well because they'd sorted some things in Welsh rugby around structures and things like that. Things sort of fell into place from that perspective."
(Reporting by Greg Stutchbury; Editing by Ian Ransom)
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