Kerry was one of several people named for top positions by the Biden transition team on Monday, reported the BBC.
Other key picks include Avril Haines as the first woman to lead intelligence, and long-time Biden aide Antony Blinken as secretary of state - the most important foreign policy position, the equivalent of the Foreign Minister in Bangladesh.
‘Tsar’ in the US/Western political contexts is a special advisory role that enjoys little parliamentary oversight, but has the potential to exercise significant leverage on government policy.
It comes as calls are growing for Donald Trump to concede the election.
He has made unsubstantiated claims of widespread electoral fraud and is continuing to pursue legal challenges over the result.
Biden is projected to beat President Trump by 306 votes to 232 when the US electoral college meets to formally confirm the winner on 14 December. This is far above the 270 votes he needs.
In a statement following the announcement on Monday, Biden said: "I need a team ready on day one to help me reclaim America's seat at the head of the table, rally the world to meet the biggest challenges we face, and advance our security, prosperity, and values. This is the crux of that team."
Some of the positions require confirmation in the US Senate.
Kerry, a losing presidential candidate himself in 2004 to George W. Bush, was chosen for the role of special presidential envoy for climate. He visited Bangladesh in 2016, in the closing days of the second Obama administration.
The Biden transition team said the position would see him "fight climate change full-time". He is also set to be the first official dedicated to climate change to sit on the National Security Council.
Kerry signed the Paris climate agreement on behalf of the US in 2016. The deal committed countries to working to limit the rise in global temperature.
Under Trump, the US this month became the first country to formally withdraw from the agreement. But Biden has said he plans to re-join the accord as soon as possible.