The 37-year-old joined Leicestershire on loan in August last year and went on to sign a two-year contract with the Grace Road outfit and managed just 59 runs from four games at an average of 7.37 last season.
Carberry will take over the reins from Mark Cosgrove despite him being the highest run-getter for the club in the 2017 season with 1112 runs from 12 matches at an average of 48.34.
Carberry has played six apiece of Tests and One-Day Internationals along with a solitary Twenty20 International for England and was diagnosed with a cancerous tumor that forced him to part ways with Hampshire in the mid of 2016 season.
Leicestershire have also named Tom Smith as the coach of the second XI and will work alongside Paul Nixon, John Sadler and Matt Mason.
"Tom is a brilliant bloke who I had the pleasure of playing alongside here," said Nixon.
"He was a top-class cricketer who was highly skilled across all formats. Tom was named as captain of Lancashire at a young age which shows his pedigree.
"He has since upskilled his coaching CV with work at Lancashire both in the men's and women's game and has also been working with the England Women team. We're delighted to have Tom on board with us."
Leicestershire will open their 2018 season with a clash against Sussex at Grace Road on 20th April.
© Cricket World 2018