Ferraro has been defensive coordinator at Maine in the FCS the last two year. He worked with the Panthers, Vikings and Rams from 2005-11, and was an assistant for UCF coach George O'Leary at Georgia Tech from 1995-01.
He replaces Jim Flemming, who left to become head coach at Rhode Island.
Neither Flemming nor Ferraro will coach the 15th-ranked Knights in the Fiesta Bowl against No. 6 Baylor on New Year's Day.