Larsen, who was an assistant coach with the Blue Jackets for seven seasons, has accepted a three-year contract that will tie him to the team until 2023-24.
The former NHL player will fill the vacancy left by the departure of John Tortorella, who had been at the helm of the Blue Jackets for six seasons.
Blue Jackets general manager Jarmo Kekalainen said in a statement that the team has embarked on a long process to find a successor to Tortorella.
He mentioned that many excellent candidates had been met, but that the best person for the job, according to management, was Larsen.
The Blue Jackets have maintained a 269-208-59 record since Larsen was behind the bench. He acted as an assistant to Tortorella and Todd Richards.
The 43-year-old coach trained in the American League with the Springfield Falcons between 2010 and 2012.
Tortorella, the Blue Jackets’ most winning head coach, was in the final year of his contract when his association with the team ended in May.
The Blue Jackets had maintained a 227-166-54 record under Tortorella.
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