The 35-year-old was previously in charge of Airdrieonians, who he led to the promotion play-offs in League 1 in 2016/17. The defender played for Dundee United, Celtic, Bristol City and Dumbarton and earned one cap for Scotland.
Wilson, whose first game in charge will be against Ladbrokes League 2 leaders Cove Rangers on Saturday September 14, told the club website: “I am delighted to be given the opportunity to manage Brechin City and can't wait to meet the players and get started.
“We have a squad of players mixed with youth and experience that I believe can improve on the position we currently sit after five games of the season. Myself and my backroom staff look forward to the challenge and hope we can deliver a successful period for the club."