Tice, who joined the Bears' staff in 2010, interviewed for the position Thursday. Head coach Lovie Smith said in a release Friday that Tice will call plays for the Bears and continue to work with the offensive line.
"I'm excited to have Mike move into our offensive coordinator role," said Smith. "He has been a valuable member of our staff over the past two years and has an excellent track record in the NFL. He was very impressive in his job interview yesterday and shares the same vision I have for our offense moving forward. We want to be a strong running team with a big-play pass attack."
Smith added that the Bears will also find a new offensive line coach as well as a passing coordinator. Quarterbacks coach Shane Day parted with the Bears on Tuesday along with Martz.
The 52-year-old Tice has been coaching in the NFL since 1996, when he joined the Vikings as tight ends coach. He was Minnesota's head coach from 2002-05, compiling a 32-33 record that also includes the final game of the 2001 season.
Tice was let go by the Vikings after the 2005 season, and was a part of the Jaguars' coaching staff for the next four years.