The former Barnsley midfielder stepped in to look after the first team following Darko Milanic's dismissal last weekend, but has now signed a 12-month rolling contract as permanent boss.
Redfearn's deal includes the option of a further year or a return to Leeds' academy, where he has worked on and off since joining the club's backroom staff in 2009.
Prior to Milanic's departure, Redfearn had fulfilled the role of caretaker on three previous occasions, and led the club to 10 points from a possible 12 when he took charge after Dave Hockaday's exit earlier this year.
Redfearn becomes Massimo Cellino's third managerial appointment since becoming chairman in April - his last two having lasted just six matches each.
The 49-year-old takes charge with Leeds sitting 18th in the Championship and without a win in six.
The Elland Road outfit visit Cardiff City in the league on Saturday.
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