“Women’s football is the fastest growing area of the game and it is hugely exciting to be taking up this role at this time.
“I want to do everything that I can to bring success to Northern Ireland.”
Irish FA chief executive Patrick Nelson described Shiels as a “fantastic coach with vast experience in the game”.
“He has the necessary skill-set and knowledge to make a positive difference to our international side,” added the Irish FA chief.
Wylie’s move earlier this year brought to an end 15 years as manager of the women’s team and he left with Northern Ireland 59th in the world rankings and 30th in Europe.
He has responsibility for player development in Northern Ireland from grassroots up to the international team in his new role.
Wylie will also oversee Northern Ireland’s youth international teams at u19, u17, u16 and u15 levels.