Fanning is currently serving as acting Army undersecretary, and previously worked as Air Force undersecretary and chief of staff to U.S. Defense Secretary Ash Carter. His nomination to the post must still be confirmed by the U.S. Senate.
"Eric brings many years of proven experience and exceptional leadership to this new role," Obama said in a statement. "I am confident he will help lead America's soldiers with distinction."
Carter called Fanning's nomination "an excellent choice" by Obama and said he hoped for a quick Senate confirmation.