The appointment means that previous acting chairman, Simon Lim, will resume his work as chief executive offer.
Dalman told the club's official website: "I am honoured to take up the role of club chairman at Cardiff City Football Club.
"I have enjoyed my time at the club since joining the board of directors in January 2012 and now relish the opportunity to contribute further in my additional role as chairman with Cardiff City in the Barclays Premier League."
Majority shareholder Tan Sri Dr. Vincent Tan added: "I am delighted to welcome Mehmet Dalman into his new and additional role at Cardiff City Football Club and look forward to many successful years ahead.
"Mehmet has had many years of experience in business across the world which he has brought to this great club since becoming a non-executive director in January last year.
"This is more great news for the football club following last week's amicable resolution with the Langston Corporation in which Mehmet played a big role. I wish him the best of luck in his additional role at Cardiff City."