Ponting will succeed Trevor Bayliss who parted ways with Punjab in July after they finished ninth in the IPL last season.
Ponting will take over after spending seven seasons with Delhi Capitals. He will be Punjab's third coach in four seasons with the franchise failing to qualify for the playoffs since 2014.
"We are delighted to have Ricky on to guide and build our team for the next four seasons. His experience is crucial to help us develop a squad to deliver on-field success," Satish Menon, Kings' Chief Executive Officer said in a statement.
Punjab haven't won an IPL title so far with their best finish coming in 2014 when they finished runners-up.
"I am grateful to Punjab Kings for presenting me with the opportunity to be the new Head Coach. I am excited to take up the new challenge," Ponting said.
"I had great conversations with the owners and the management about the way forward and was truly elated to see the alignment of our visions for the team.
"We all want to repay the fans who have stayed with the franchise over the years and we promise that they will see a much different Punjab Kings going forward."
Ponting has been part of IPL since their inaugural season in 2008 where he featured as a player for Kolkata Knight Riders followed by the Mumbai Indians in 2013, where he stepped down from captaincy mid-way through the season.
He then joined Delhi in 2018 and led the franchise to three successive playoffs between 2019 and 2021, including their first IPL final in 2020.
In 2024, he also led Washington Freedom to the Major League Cricket title in the United States.