The former Aberdeen, Dunfermline Athletic and Queen of the South forward will be assisted at Glebe Park by experienced coach Gerry McCabe.
The pair took charge for last week's 2-0 win at Albion Rovers following the departure of Mark Wilson and have now been confirmed as the new management team ahead of Saturday's home game against Stirling Albion in League 2.
A Brechin City spokesman told the club website: "A number of candidates were considered for the role but Michael’s desire, ambition, football knowledge and passion to succeed at Brechin City have left the management committee in no doubt that he, ably assisted by the vastly-experienced Gerry McCabe, is the right person to improve the club's position."