The Sparks announced the hire on Wednesday. Fisher, 44, was a five-time NBA Finals champion during his 18-year NBA career. He also posted a 40-96 record in 136 games as coach of the New York Knicks, before being fired during the 2016 season.
"I'm excited to be the new head coach of the LA Sparks," Fisher said in a news release from the Sparks.
"There is no finer organization in the WNBA and I can't wait to work with our ownership group, front office, talented players and staff to cement a culture of sustained excellence, which is what LA basketball fans demand -- and deserve."
Fisher averaged 8.3 points, 3.0 assists, 2.1 rebounds and 1.1 assists during his NBA playing tenure. He also played for the Golden State Warriors, Utah Jazz, Oklahoma City Thunder and Dallas Mavericks.
"I am thrilled to name Derek Fisher our next head coach," Sparks executive vice president and general manager Penny Toler said. "Derek is a champion and proven leader on and off the court. With his wealth of experience as a former player and head coach, I can't think of a better steward for our basketball team moving forward."
The Sparks are led by two-time MVP Candace Parker. Los Angeles posted a 19-15 record last season under coach Brian Agler and won the WNBA title in 2016. Agler resigned in November after four seasons as head coach.