Shannon, who was fired by the Hurricanes following the 2010 season, takes the place of Tony Tademy, who resigned earlier this month.
Shannon spent last football season traveling to various programs to learn about how they work, including Alabama, UNLV, Oregon and TCU, among others.
TCU is preparing for its first season in the Big 12 conference. The program has played in two BCS bowls, including a victory over Wisconsin in the 2011 Rose Bowl.
Shannon was fired after Miami fell to South Florida in the season finale in 2010. He had a 28-20 record in four seasons and Al Golden was hired to take his place.