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The announcement was made by Union minister Ravi Shankar Prasad.
Prasad, along with Bharatiya Janata Party (BJP) general secretary Arun Singh, attended the legislative party meeting as central observers.
Khattar’s name was proposed by MLAs Anil Vij and Kanwar Pal and seconded by other BJP legislators.
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The swearing-in ceremony of the Khattar-led BJP government will take place on Sunday.
The saffron party is all set to form the government in Haryana after clinching an alliance with the Jannayak Janata Party (JJP), which won 10 seats in the 90-member Assembly in the just-concluded polls, by giving it the post of deputy chief minister.
On Friday, BJP president Amit Shah told a press conference in New Delhi that the chief minister will be from his party and the deputy chief minister from the regional party.
JJP chief Dushyant Chautala was also present at the press conference.