Jayawardene's appointment has come in the wake of Ponting's contract coming to a close.
The former Australia captain was Mumbai Indians chief coach for the the past two seasons after taking charge from former India coach John Wright.
Commenting on the Sri Lankan's appointment, team owner Nita Ambani said, "Jayawardene is an astute figure in the modern era of cricket. He is a perfect role-model for the young Mumbai Indians squad. I am sure our global fans, who have always believed in the team and expects the best, will welcome Mahela to our Mumbai Indians family."
The Sri Lankan while accepting the challenge has termed his new assignment as the "start of a new chapter" and is looking forward to bringing the best of his life learning to the field.
"I am very excited by the appointment and glad that the Mumbai Indians management appreciated my presentation and ideas," said Jayawardene adding, "I am looking forward to working with a really talented squad, all the support staff, and the owners to help strengthen the two-time IPL champions.
Jayawardene will soon be travelling to Mumbai to conduct a detail meeting with the team management.
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