The former Crusaders, Cliftonville, Glenavon and Dungannon Swifts player previously worked for the Irish FA as club and community development officer and within its coach education department.
O’Carroll joins the association from Scottish Premier League side Motherwell where he was in charge of the U20s and provided analysis on opponents for the first team.
The 33-year-old is looking forward to the new challenge.
“I’m absolutely delighted to be appointed as the Northern Ireland U19 and U17 manager,” he told the Irish FA website.
“My passion is youth development and this role provides me with the exciting opportunity to help nurture young players through their journey to one day playing at the National Stadium as a full international.
“I leave Motherwell FC having loved my 18 months at what is a fantastic club with great people throughout. I previously had five great years as an Irish FA employee and I’m really looking forward to returning to the association in my new role.”
Senior team manager Ian Baraclough welcomed the appointment, which came after an exhaustive recruitment process.
“It was a very tight call between the three (final candidates) but we believe we have got the right person for the job in Diarmuid,” he said.
Graham Alexander, who replaced former Northern Ireland senior men’s team coach Stephen Robinson as Motherwell boss last month, said he is sorry to see O’Carroll leave.
“Diarmuid has been a valuable, hard-working member of the staff which has helped us since coming into the club. We are sorry to see him go but understand what a good opportunity this is for him back home. We wish him well,” he said.
O’Carroll replaces Stephen Frail as manager of Northern Ireland’s U19s and U17s. Frail stepped down last summer to become assistant manager at Scottish Premier League side Dundee United.
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