Simor, who is due to take up his position on July 1, will also be a member of the European Bank for Reconstruction and Development's executive committee, the EBRD said in a statement.
He was governor of the National Bank of Hungary from 2007 until earlier this year, when he was replaced by former Economy Minister Gyorgy Matolcsy, appointed by Prime Minister Viktor Orban.
Simor's fight for central bank independence from political influence won him Emerging Markets' Emerging Europe Central Bank Governor of the Year award in 2010.
"We are honoured by the extremely strong field of candidates who have expressed their interest to serve at the EBRD. In András Simor we have selected someone who will bring his wide skills and experience to the Bank," Sir Suma Chakrabarti, EBRD president, said in the statement.
As vice president for policy at the EBRD, Simor will be responsible for leading the coordination of strategies, policies and initiative supporting the bank's transition mandate, as well as for the mobilization and management of donor funds and overseeing the bank's engagement with certain stakeholders and organizations.
"I am delighted to have been chosen for this position," Simor said.
"The EBRD is a crucial actor in the transition of the countries where it operates and it is a privilege to help to strengthen and expand the Bank's work and position. I look forward to being able to build on the strong foundations that already exist at the EBRD."
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