Auriemma is a Hall of Fame coach who has a 696-122 record at Connecticut, including 39-0 this last season. The Huskies this month won a sixth NCAA title since Auriemma took over at Connecticut 24 years ago.
Auriemma was inducted into the Naismith Memorial Basketball Hall of Fame in 2006.
"There is no better coach in America than Geno Auriemma and we are delighted to be able to have a coach of his caliber lead our women's national team program through the 2012 Olympic Games," said USA Basketball Chairman Jerry Colangelo.
The U.S. women's teams have won the gold medal at each of the last four Olympics, including in 2000 when Auriemma was an assistant coach.
"It's an opportunity that if you're very fortunate comes once in your life and I never thought I would ever have this opportunity," Auriemma said. "It's just overwhelming, the emotions that run through you. What an incredible honor it is to be selected."