Steele replaces Francis Baron, who is stepping down after 12 years in the job. Steele won rugby union’s European Cup as coach of Northampton in 2000.
UK Sport, Steele’s previous employer, is the body which distributes public funds to elite sport in the UK.
"I'm delighted to be taking up the role of chief executive at the RFU, and looking forward to what I know will be a big challenge in the sport that I am immensely passionate about," said Steele, as reported by Eurosport. "The decision to move on was an incredibly difficult one.
"…However, the next five years will be hugely exciting times for English rugby, culminating in a home World Cup in 2015.
"During this time I will be totally committed to ensuring a legacy is created from the World Cup at both a community and elite level, whilst building on the sound commercial base already created at Twickenham."
