Fulton will replace Craig McMillan, the current New Zealand batting coach, who had earlier stated that he won't renew his existing contract, which ends after the World Cup in England and Wales.
McMillan has had a successful stint with New Zealand and played a vital role in their successful World Cup campaign in 2015. The likes of Tom Latham, Henry Nicholls and Mitchell Santner and have seen their careers blossom under his tenure. More experienced bats like Ross Taylor and Kane Williamson also flourished during that period.
New Zealand's head coach, Gary Stead, expressed excitement at Fulton's appointment and was confident that the former opening batsman would be a good fit for the team's environment.
"Pete obviously has a good understanding of batting, but he also demonstrated a clear vision for helping our elite batsmen. He's shown he has the coaching skills through his work with the New Zealand Under 19's and our winter training squads, while we know from his playing days that he will certainly add to our team culture," he said.
Fulton, who made 84 international appearances for New Zealand, said he was honoured to take up the role. "Like many Kiwis, I've watched and admired the way the team's gone about their business in recent years and so it's pretty special to be invited back into the set-up," Fulton said.
"We've obviously got some really talented batsmen in the country and I'm looking forward to working with them to see how they can continue improving their games."
Fulton will officially begin his new role from 1 August.