Craig moves to Easter Road after working with the Scottish Football Association's Club Academy Scotland elite player development programme.
"I'm delighted to be given this opportunity at Hibernian," he said. "It's a new role at the club and a fresh opportunity to move everything forward.
"My main objective will be to ensure there is a clear pathway from our academy set-up all the way through to the first team.
"My experience from working with the Scottish FA's Club Academy Scotland set-up will help to strengthen that process.
"This is a club with huge potential and I'm keen to implement new plans as quickly as possible to improve several areas and build the foundations for long-term success at Hibernian."
Chief Executive Leeann Dempster believes Craig will prove to be a key appointment.
She said: "We're really pleased that George has joined the club - he brings with him a wealth of experience and expertise from his time working with the SFA.
"Just to clarify the point, his remit is broad and covers a wide range of areas - he is not a Director of Football.
"George will ensure we aim to introduce the best coaching syllabus, scouting network, individual development programmes, sports science and performance analysis into the football club.
"George and I will be developing and writing both Football and Non-Football plans for the club - incorporating the first team, Academy and Community Foundation.
"This is an exciting appointment as we reshape and look enthusiastically towards a bright future."