As revealed in MEN Sport the former Salford, Widnes and Barrow boss has been favourite for the job since taking up a teaching post in Wigan.
Scotland coach McCormack will work alongside assistant player coach Ian Watson and Marlon Billy in a part-time role.
The Lions appointed former Huddersfield Giants second row Paul Smith as player-coach last season but he quit half way through the campaign.
Director of rugby Paul Kidd said: “Steve’s appointment is a great solution to the problems experienced last season.”
Watson is delighted to renew his working relationship with McCormack who was his coach at Salford and Widnes.
A club statement said: “Steve is looking forward to this new challenge in this part-time appointment to complement his new post in education.
“He believes that his relationship with both Ian and Marlon will flourish and this will be borne out on the field in 2011.
“He anticipates a full and useful pre-season starting with a full squad of 20-24 players from day one.
“In working with Paul Kidd he renews a partnership from his Salford days and relishes bringing a new life to a club that he regards as having potential to be successful once again, especially if the Agecroft project can be realised.”
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