The university announced on Thursday that Ms Clinton, who received an honorary doctorate from the university in October, will become the 11th Chancellor.
The role of chancellor lasts for five years, and Ms Clinton will act as an advisor to the vice chancellor Professor Ian Greer and senior management as part of it.
She will also preside at most graduation ceremonies and be an ambassador for the university overseas.
Ms Clinton accepted the position and said: “It is a great privilege to become the Chancellor of Queen’s University, a place I have great fondness for and have grown a strong relationship with over the years.”
Stephen Prenter, pro-chancellor and chair of the University’s governing body, said: “I am delighted that Queen’s has chosen Hillary Clinton to be its new Chancellor.
“Secretary Clinton has made a considerable contribution to Northern Ireland and as an internationally recognised leader will be an incredible advocate for Queen’s and an inspirational role model for the Queen’s community.”
Ms Clinton first visited Northern Ireland in November 1995 as First Lady with her husband, former President Bill Clinton.
Mr Clinton was the first serving US president to visit the country and considers his visit as the top foreign policy achievement of his presidency.
The Clintons spent their symbolic visit meeting with representatives in the community and switched on the Christmas lights outside Belfast City Hall.
Ms Clinton has visited Northern Ireland frequently since then, including as a keynote speaker at a women’s conference in 1999 and to give a lecture at the University of Ulster in 1997.