Larsen will assist New Zealand coach Mike Hesson in picking the Test, ODI, T20I as well as the New Zealand A squads. Larsen's first task will selecting the squad for the tour to Zimbabwe and South Africa, which will be announced on Thursday.
"Gavin will be a real asset," NZC's Head of Cricket Lindsay Crocker said. "His breadth of experience - as a player, as a Cricket World Cup administrator and a former chief executive of Cricket Wellington means he's stayed close and connected to the game."
Larsen, who served as a Cricket Operations Manager for New Zealand during the World Cup, expressed excitement about the new role. "I have the utmost respect and admiration for the way the Blackcaps have moved things forward under Mike's direction and I'm looking forward to helping that progress continue.
"It's impossible not to be impressed by the consistency and stability of the selection process in recent years, which, I believe, points to excellence in terms of leadership."
Larsen played 121 ODIs and eight Tests between 1990 and 1999.