Contepomi, 46, earned 87 caps for the Pumas and was previously assistant to Cheika.
The Australian has left the role after reaching the semi-finals of the 2023 World Cup with the Pumas before they were beaten by losing finalists New Zealand.
"I am very proud to have been the head coach of Los Pumas," said Cheika.
"It is one of the experiences I have enjoyed the most in my coaching career.
"Although I was born in Australia, a big part of me will be Argentina. I am convinced that Felipe and his staff will lead the team in the best way."
Cheika took charge of Argentina in March 2022 and won 11 and lost 13 Test matches during his tenure.
"I had the honour of working with Michael Cheika in the consolidation of a sporting project, which challenges and excites us as part of a great Argentine team," said Contepomi, who played for Bristol, Leinster, Toulon and Stade Francais.
"For that reason I am grateful for the extraordinary opportunity that the UAR (Argentine Rugby Union) gives me."
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