The appointment ends months of infighting among top generals for the post, which falls vacant on Monday when the term of incumbent military chief Lieutenant General Gabi Ashkenazi comes to an end.
"General Benny Gantz is an excellent officer and an experienced commander," said Prime Minister Benjamin Netanyahu after the cabinet unanimously approved him for the job.
Netanyahu said he hope Gantz would help heal the rifts in the military at a time of uncertainty in the Middle East.
"This appointment will held stabilise the Israel Defence Forces. This is always important, but even more so at this time of deep tremors that have hit our region," Netanyahu said.
Israel has expressed deep concern at the ousting of Egyptian President Hosni Mubarak, fearing that a future Egyptian government may not honour a peace treaty with Israel signed in 1979.(*)
Editor: Ruslan Burhani
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