McCall, 52, who has signed a two-year contract, had two spells at Bradford as a player and returns for his second stint as manager following the recent departure of Phil Parkinson to Bolton.
"I'm delighted to be back at this great club and I'm looking forward to the exciting challenge ahead," McCall told the club's official website.
"Over the next few days I will be getting to know the staff and working with the chairmen on building a competitive squad for the new season."
Kenny Black, who has previously worked with McCall at Motherwell and Rangers, has been appointed as his assistant.
Bradford's joint chairman Edin Rupp added: "Stuart's fondness for Bradford City is evidently deep-rooted
He deserves this opportunity and I know the fans will join me in wishing him every success.
"Since his first spell as manager of Bradford City, Stuart has gone on to prove his credentials during a very successful spell at Motherwell and in the last couple of years has gained international coaching experience as Gordon Strachan's assistant.
"Whilst we considered a number of high-calibre applicants for the post of manager, we were clearly of the view that Stuart was the best man to take the club forward
We look forward to working with him."
Leeds-born McCall, who has been working as Scotland coach under Gordon Strachan, began his playing career at Bradford and, after successful spells at Everton and Rangers, the former Scotland international returned to Valley Parade in 1998, 10 years after first leaving the club
McCall skippered Bradford to promotion to the top flight for the first time in the club's history in 1999 before moving on to Sheffield United, whom he helped win promotion to the Championship before finally hanging up his boots shortly before his 41st birthday.
He took on his first coaching role as assistant player-manager to Chris Hutchings at Bradford in 2000 but departed Valley Parade again after a brief spell as caretaker player-boss, moving on to Sheffield United, where he worked in a similar player-coach's role under Neil Warnock.
In the summer of 2007 McCall was appointed manager of Bradford, who had just been relegated to League Two, but he departed by mutual consent in 2010 after failing to win promotion.
McCall was named Motherwell manager later that year and twice guided them to the Champions League with third and then second-placed finishes in the Scottish Premier League.
He resigned in November 2014 and took charge of Rangers in March 2015, but left the following summer when they appointed Mark Warburton as manager.
Source : PA