Martino, who has also coached Barcelona and Paraguay's national team, has not worked since quitting as Argentina manager in July, reported Xinhua.
"We're excited to have a world class coach leading our club," Atlanta president Darren Eales said in a video posted on Twitter.
"He has cultivated excellence everywhere he has been. Now it's time for a new era," Eales added.
Atlanta will join Minnesota United as the latest franchises in the 22-team MLS next year.
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