Dimel had spent the past nine seasons on Bill Snyder's staff at his alma mater and previously served as the head coach at Houston (2000-02) and Wyoming (1997-99). He went 22-13 at Wyoming but just 8-26 at Houston.
"We will work diligently to elevate UTEP football to the highest level in Conference USA," Dimel said in a statement. "Having been a part of a major turnaround at Kansas State and having the success we did at Wyoming, I'm just really excited about the leadership challenge that's ahead."
Former UTEP coach Sean Kugler resigned after the team started 0-5 this season and was replaced by Mike Price on an interim basis. The Miners finished 0-12.
Kugler was hired prior to the 2013 season and compiled an 18-36 record with one bowl appearance -- a 21-6 loss to Utah State in the 2014 New Mexico Bowl.