Current GM chairman, Kent Kresa, will lead GM until the launch of the new company.
Both Mr Whitacre, 67, and Mr Kresa will be appointed to the New GM board while five existing members will remain but six current board members will retire once the US Bankruptcy Court has approved the sale of assets from Old GM to New GM.
Four new board members are still to be decided while the Canadian government and the UAW Voluntary Employees' Beneficiary Association will have the power to appoint another two. Total size of the new board will be 13.
Mr Whitacre led America's largest telecommunication company from 1990 to 2007, he also serves on the board of ExxonMobil and Burlington Northern Santa Fe.
The new CEO of GM is a industrial engineering graduate from Texas Technological University.
In order for the New GM to rise, President Obama's administration will help with a total of more than US$50 billion (A$63 billion) in federal loans. The US government will take a 60 per cent stake in New GM but has assured the company's board that it will leave key decisions up to the them.
The bankruptcy will allow Old GM to sell its most valuable assets to New GM, leaving most liabilities with the old legal entity.