Sabella, 56, coached Estudiantes to the Copa Libertadores and had been due to take charge of Al-Jazira in the United Arab Emirates before Batista's exit, which was prompted by a disappointing Copa America showing.
Jose Luis Meiszner, the general secretary of the Argentine Football Association, told Telam: "The decision has been taken. Sabella is the choice."
Sabella will be instructed to make a success of one of world football's most talented squads, where he will be able to pick from the likes of Lionel Messi, Javier Mascherano, Sergio Aguero, Carlos Tevez, Gonzalo Higuain and Angel Di Maria, amongst others.
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