University trustees unanimously approved Mal Moore's hand-picked successor and former Crimson Tide football teammate on Friday. He was to be introduced at a news conference later in the day.
Alabama President Judy Bonner says the 71-year-old Battle will make $620,000 annually over four years.
Battle played with Moore on Bear Bryant's 1961 national championship team. He spent seven years as Tennessee's head coach in the 1970s.
Battle founded Collegiate Licensing Co. in 1981 and spent 21 years as president and CEO.
Moore resigned on Wednesday as athletic director because of health problems.
Trustee Finis St. John said Alabama is "incredibly fortunate to have someone available and willing to take this job with the integrity and experience coach Battle brings."