Bazeley was also confirmed as New Zealand's under-23 coach and will look to steer the squad through qualification for next year's Paris Olympics.
Bazeley's appointment comes after NZF missed out on their preferred candidate, John Herdman, who re-committed to coaching Canada in February, New Zealand media reported.
"This has been an in-depth recruitment process and I’m confident we have the right person to lead the team for the new FIFA World Cup cycle," NZF boss Andrew Pragnell said in a statement.
"While the appointment process took longer than initially expected, it allowed us to test Darren in the role, and he proved to all of us he was the right candidate for the job."
Bazeley was appointed interim head coach after Danny Hay's left following New Zealand's failure to qualify for last year's World Cup in Qatar.
He has overseen a win and draw against China and defeat against Sweden.
The All Whites' recent friendly against Qatar was abandoned midway through when Bazeley's players declined to take the field after halftime in protest of alleged on-field racism.
Bazeley's next assignment will be Olympic qualifiers in August, followed by All Whites fixtures in the October and November FIFA windows.
With the Oceania region guaranteed a slot at the expanded, 48-team World Cup in North America in 2026, New Zealand are likely to qualify for their first World Cup since 2010.
"I have known and coached many of the players in this group for a long time so it will be a real privilege to continue on the journey with them to develop football in New Zealand and leave a legacy for the next generation," Bazeley said.
