The announcement was made at Oakland Hills, with Sutton, representatives of the course, the PGA of America, and the state of Michigan in attendance.
Sutton competed in his fourth Ryder Cup last month at The Belfry in Sutton Coldfield, England, where the United States lost for the third time in the last four events.
He was a Ryder Cup team member in 1985, '87, '99, and 200. He left his mark in the competition with an inspiring 3-1-1 record in 1999 to spark a U.S. comeback victory at The Country Club in Brookline, Mass.
The Shreveport, La., native has won 14 PGA tournaments, and became only the third wire-to-wire winner of a PGA Championship when he captured the 1983 Championship at Riviera Country Club in Pacific Palisades, Calif.
"Hal Sutton's passion for the game, his drive to become a champion and his leadership in past Ryder Cup Matches make him the ideal leader to guide the American team in the 2004 Matches," said PGA of America President Jack Connelly. "Hal was a key member of past Ryder Cup Teams and his performances have earned him the respect of his teammates as well as many around the world."
Sutton won the 1983 PGA Player of the Year Award.
Oakland Hills has hosted six U.S. Open Championships, the 1972 and '79 PGA Championships, the 1981 and '91 U.S. Senior Open, the 1929 U.S. Women's Amateur Championship, and the 2002 U.S. Amateur Championship. In 2008, Oakland Hills will host the 90th PGA Championship.