McVeigh has spent the past 12 months leading the Giants' Academy and will now take over the role vacated by James McDonald, who decided to step away from football back in July.
The 33-year-old McVeigh grew up on the NSW Central Coast and went on to play 232 games for Essendon before making the move into coaching.
"With six wins in 2014, the club has a very exciting future," McVeigh said.
"And I'm looking forward to working with Leon and the rest of the coaches to help take this very talented playing list to the next level.
"As somebody who grew up in NSW, it's a great opportunity to help develop the game up here."
GWS football manager Graeme Allan was pleased McVeigh had accepted the position.
“Mark has done a terrific job heading up the Giants' Academy in the last 12 months and we are delighted that he’s now joining our senior coaching staff on a full-time basis," he said.
“Having played over 200 AFL games and helped identify and develop young talent in our zone, Mark comes to the role with very good credentials and joins what is a strong coaching panel headed by Leon and his senior assistant Alan McConnell.”