Following his departure from Charlton in March, Powell worked alongside John Peacock and Kenny Swain assisting England’s U17s in their preparations for the European Championship, which they eventually won.
The 44-year-old, who is the only black manager amongst England’s 92 league clubs, also studied for and obtained his UEFA Pro Licence over the summer.
Powell has been a long-term supporter of the Kick It Out campaign, and the organisation's chair, Lord Herman Ouseley, says the appointment of Powell is a boost for those striving for greater diversity in football.
"It is great to see Chris Powell has been appointed as manager of Huddersfield Town and we have passed on our congratulations to him," Lord Ouseley told Sky Sports.
"He has proven his managerial credentials during his highly successful spell at Charlton Athletic and is a fully qualified coach having gained the UEFA Pro Licence this summer. His knowledge of the game is second to none.
"Chris has been a leading ambassador for Kick It Out since the very outset and he acts as a shining example for all young aspiring coaches looking to break into football at the very highest level.
"His appointment sends out a positive message as we continue to strive for greater diversity in management and coaching positions, and across all areas of the football industry from the boardroom downwards."