The former Uruguay and Juve defender has signed a two-year contract to lead the Serie C development team.
Montero ended last season as senior Juve caretaker coach after stepping up from the Primavera after Max Allegri's dismissal.
“First of all, I would like to thank Juventus for putting their trust in me. It is an honour for me to continue coaching at this club and my primary objective will be to help my players continue their development,” Montero said in a statement released on Juventus’s club website.
“Enthusiasm, joy, passion and a sense of belonging will be our fundamental principles. The latter, the sense of belonging at this club, will be the most important value to pass on to the players, because it will be the difference maker on the pitch.”