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Praising Perry's gubernatorial experience, Trump said Perry would "do an amazing job" in his new role.
"As the governor of Texas, Rick Perry created a business climate that produced millions of new jobs and lower energy prices in his state, and he will bring that same approach to our entire country as secretary of energy," Trump said in a statement released by his transition team.
Perry said in a statement that he was "humbled" by Trump's trust in him.
"As the former governor of the nation's largest energy producing state, I know American energy is critical to our economy and our security. I look forward to engaging in a conversation about the development, stewardship and regulation of our energy resources, safeguarding our nuclear arsenal and promoting an American energy policy that creates jobs and puts America first."
This newly expressed mutual admiration comes nearly a year and a half after a contentious primary season in which Perry and Trump ran against each other. Perry was one of the first in the 2016 race to attack Trump, calling him a "cancer on conservatism."
If confirmed by the Senate, Perry will lead the federal agency he said he wanted to eliminate but couldn't name in a famous "oops" moment during a 2011 GOP primary debate.
ABC News' Arlette Saenz contributed to this report.