Joachim Loew made the announcement at a press conference prior to his team's friendly against Argentina.
Thirty-year-old Schweinsteiger has won 108 caps and scored 23 goals for Germany.
The midfielder was a key member of the team which won the 2014 World Cup in Brazil.
"Bastian is the absolute leader and he has always shouldered responsibility for the national team on and off the pitch." Loew told reporters.
"I know Bastian is always there when we need him. He will be a great and worthy captain of our team. He is a legitimate successor to Philipp."
However, due to Schweinsteiger's knee injury incurred in pre-season, his club team-mate Manuel Neuer will skipper the side against Argentina.
Loew also said former VfB Stuttgart coach Thomas Schneider would be his new assistant, succeeding Hansi Flick, who becomes the federation's sports director.
"The challenge with the national team is a great one," Schneider said. "I am honoured that both the DFB and Joachim Loew trusted in me."
- Sports & Recreation
- Joachim Loew