Campbell will receive a six-year contract with Detroit, NFL Network's Ian Rapoport reports.
"With more than 20 years of experience as both a coach and player in the National Football League, Dan knows the rigors of professional football and what it takes to be successful," Lions owner Sheila Ford Hamp said in a statement.
"He will help promote the culture we want to establish across our organization while also bringing with him high energy, a respect for the game, and an identity with which everyone can align themselves."
The 44-year-old spent the last five seasons with the New Orleans Saints as their tight ends coach and assistant to the head coach.
Campbell also served as the Miami Dolphins' interim head coach in 2015, going 5-7 on the job.
The Lions will be hoping their new head coach can bring some much-needed stability after they fired Matt Patricia during the 2020 campaign. Patricia finished with a 13-29 record during his tenure.
Detroit has missed the playoffs in each of its last four seasons and has just three postseason appearances since 2000.