The 61-year-old former England all-rounder, who ended his distinguished playing career with the north-east outfit, has stepped in in the wake of the cash-strapped club's relegation from Division One of the Specsavers County Championship after accepting a financial bailout from the England and Wales Cricket Board.
Speaking as he was unveiled at the Emirates Riverside on Monday, Botham said: "Anyone who knows me knows I'm not going to go into this half-cocked.
"As far as I'm concerned, it's something that I'm proud to be doing. I love the area, I'm part of the area, I regard myself as a local, so I am here.
"I am here and hopefully I'll be sitting here in a year or two year's time and we are lifting that trophy again because we are good enough.
"The record is there for everyone to see. Since we joined first-class cricket, just look at the Test players we have produced, so there is a lot to fight for here."
Botham admitted Durham had come very close to folding as they attempted to deal with debts of £7.5million, with Durham County Council opting to convert around £3.74million it was owed into preferential shares.
The ECB stepped in, but the rescue package came at a cost with the three-time county champions handed a 48-point deduction at the start of the season.
However Botham, who will combine his role with his commitments as a television pundit, is taking a typically robust approach to addressing the on-field deficit.
He said: "I live just down the road, so I am well aware of the views of the public and have been for the last 30 years.
"Look, there are two ways to look at it: you can sit here and whinge and go, 'Ah, we are -48 points', or I can turn around and say, 'That's two wins', and the team is more than good enough to get those two early wins.
"Then in Division Two, they will be, in my opinion, probably the best side by a distance playing in that division and it's down to the players and a bit of luck with the weather.
"But look, we could be playing Minor Counties. We're not, we're still playing first-class cricket and we have a club, and I think a club that will prosper."
