Panthers coach Paul Chryst made it official on Wednesday, though Savage was considered the front-runner to win the job since spring practice.
Savage, who transferred twice before landing at Pitt, hasn't played a college game since 2010 when he was a sophomore at Rutgers.
He was the most experienced quarterback on Pitt's roster.
Savage started as a freshman for Rutgers and passed for 2,211 yards with 14 touchdowns and seven interceptions in 2009. He transferred to Arizona, but never played for the Wildcats, then transferred to Pittsburgh and sat out last season.