Scangarello agreed to a three-year contract, sources told ESPN's Pete Thamel.
Scangarello, 49, spent last season as the 49ers' quarterbacks coach -- his second stint with the team -- after stops with the Philadelphia Eagles and Denver Broncos, with whom he served as offensive coordinator in 2019.
He replaces Liam Coen, who left Kentucky after one season to become offensive coordinator for the Los Angeles Rams.
Scangarello returns to college football for the first time since 2016, when he served as offensive coordinator at FCS Wagner. He also brings FCS coordinator experience from Northern Arizona and UC Davis.
"The timing was perfect for me to be a coordinator again especially under a head coach who has a vision for the offense we will run," Scangarello said. "(Mark Stoops') belief in a pro-style system felt like the right opportunity for me and at the right time. I've watched UK play on film and I really like the quarterback Will Levis. Seeing how he plays in this high-level system was part of the appeal. I think we will continue doing great things and I'm ready to get started."
New York Jets quarterbacks coach Rob Calabrese and Los Angeles Chargers wide receivers coach Chris Beatty, a former college offensive coordinator, were among those considered for the Kentucky job, sources told ESPN.