The school tweeted the news of Terry's appointment and scheduled a Tuesday news conference to introduce him as head coach going forward.
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The announcement came barely 24 hours after the Longhorns' season ended when Texas was knocked out of the NCAA Tournament by Miami on Sunday.
Terry led the Bulldogs from 2011-2018, with an NCAA Tournament appearance in 2016 and multiple 20-win seasons.
Rewarding Terry with the promotion was no surprise.
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Texas went 22-8 under Terry, and his march to the Elite Eight was the program's first time beyond the NCAA Tournament's first weekend in 15 years.
He took over the Longhorns as acting head coach when Beard was first suspended on Dec. 12 after a felony domestic violence arrest. Terry was then given the title of interim head coach when Beard was fired Jan. 5. The charge against Beard was dismissed in February.
The Associated Press contributed to this report.