Prince served as wide receivers coach and passing coordinator last season, his first back in Boise after a seven-year break. Prince previously coached Boise State wide receivers from 2001-2003 before taking jobs with NFL teams.
Prince's promotion comes just days after Brent Pease left Boise State to become offensive coordinator at Florida. Prince will continue to coach Boise State receivers.
Petersen says he's confident in Prince's talents and skills directing Boise State's offense, which for years has been one of the most potent in college football.
The Broncos finished 12-1 last season and averaged 44.2 points and 481.3 yards per game.
In the NFL, Prince held coaching positions at Seattle, Jacksonville and Atlanta.