Brian Ellerbe, the assistant coach who had been running Michigan basketball practices after Steve Fisher was fired, was chosen interim head coach.
"I decided to keep our group intact," athletic director Tom Goss said at a news conference at Crisler Arena.
Goss said he consulted with leading coaches around the nation in making the decision, including Roy Williams of Kansas, Mike Krzyzewski of Duke, Bob Knight of Indiana, John Thompson of Georgetown and former North Carolina coach Dean Smith.
Ellerbe came to Michigan in May after three seasons as head coach at Loyola College in Baltimore. He had a 37-47 record with a struggling program.
Goss said he would conduct another search after the season, and emphasized that Ellerbe's appointment was temporary.