Peter Clare resigned in August last year to focus on his recovery from surgery.
McLean has been acting chief executive since June last year.
He had been managing Westpac's Americas division in New York.
The group chief executive of the bank, Brian Hartzer, said he was pleased to appoint someone "deeply respected" by the New Zealand business community.
"It is important to me that someone with such in-depth knowledge of the business and local market will be taking on this critical role for the group," he said.
McLean said he was honoured to be appointed to the role, and was "extremely proud" to lead the business.
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