Locksley, who served as the interim head coach at Maryland for six games in 2015 after the firing of Randy Edsall, had been working on the Alabama staff as an offensive analyst during this past season, which saw the Tide go to the College Football Playoff national championship, only to lose to the Clemson Tigers in the final second.
"He is an outstanding offensive mind who brings a wealth of knowledge and experience as both a head coach and offensive coordinator," Saban said in a statement on the Crimson Tide website. "Mike is also one of the best recruiters in the nation and will be an excellent addition to our staff."
Locksley, who went 1-5 as the interim coach at Maryland, had previously been the Terps' offensive coordinator and the head coach at New Mexico.
"I can't wait to get back out on the football field and the recruiting trail as we turn our attention to the 2017 season," Locksley said in a statement on the Crimson Tide website. "I have always appreciated the storied history of the Alabama football program, but the chance to spend the past year looking at the program from the inside out really showed me why this place is so special."