Ashworth, 41, will remain in his current position at West Brom until next summer before taking up his new post.
"Working within the national set-up has always been a lifelong ambition," said Ashworth.
"To do so at a time when the future of the game has never looked brighter is an exciting challenge."
It follow's Roy Hodgson's appointment to England manager and Ashworth impressed enough to follow his fomer boss into the Engalnd camp.
He will be based at the FA's new National Football Centre at St George's Park and joins the organisation following ex-England defender Gareth Southgate's departure from the role in July.
Working with director of football development Sir Trevor Brooking, Ashworth will be involved with developing the country's elite talent but not working specifically with the England senior or Under-21 teams.
Ashworth will manage the FA's coach education team and ensure that the facilities at St George's Park are used efficiently.
Before Ashworth takes up his role, Albion chairman Jeremy Pearce said the 41-year-old will assist the club in identifying his successor and integrating his replacement into the role.
•Playing career included stints at Norwich and Wisbech
•2000: Becomes academy director at Peterborough
•2001: Appointed as Cambridge United's centre of excellence director
•March 2004: Leaves post at Cambridge United to assist Aidy Boothroyd with running West Brom's own centre
•June 2004: Takes charge of West Brom's youth ranks following Boothroyd's departure to Leeds
•December 2007: Seconded to be club's sporting and technical director
•July 2008: Made permanent in position - overseeing first team, scouting & recruitment, medical & sports science and academy