It was reported earlier that Houston Texans offensive coordinator Rick Dennison was the favorite to land the job, but Fox's experience was the deciding factor in the Broncos' decision.
Despite a miserable 2-14 season, Fox had a respectable nine-year career with the Panthers.
Fox led the Panthers to their only Super Bowl in franchise history in 2004 in a 32-29 loss to the New England Patriots.
Fox had a 73-71 record with the Panthers.
Moving on from Fox, what does his hiring mean for Tim Tebow?
There has been plenty of speculation that Tim Tebow could be traded, and possibly to the Minnesota Vikings.
With Fox as the new head coach, the Broncos should hang on to Tebow for the simple fact of what Fox did with Jake Delhomme in Carolina.
Delhomme was an inexperienced quarterback before joining the Panthers and went on to have a solid career, including a Super Bowl appearance.
It was recently speculated that Broncos executive vice president of football operations John Elway stated that Tebow is not a good NFL quarterback, hinting at the fact that Tebow could be on the move.
Elway clarified to Sports Illustrated's Peter King that Tebow needs to prove himself as a quarterback in this league, but the Broncos have no intention of moving him.
Why trade away a fan favorite who you drafted in the first round?
Tebow started his first game this season against the Raiders, in which he threw for a touchdown and ran for 78 yards and another score.
In his second start, Tebow threw just over 300 yards, proving that he can be a quarterback in this league.
No. 15 finished with five touchdowns and three interceptions in three starts during the regular season and it seems as he is staying put.
Tebow is an exciting player and a fan favorite, and it would not be wise for the Broncos to move him.
Source: John Elway on Twitter