In a statement, Mr. Trump praised Mr. Tillerson, 64, as among the “most accomplished business leaders and international dealmakers” in the world.
Mr. Tillerson is said to have a good relationship with Russian President Vladimir Putin, alarming both Democrats and some Republicans, the BBC reports.
The nomination needs Senate approval.
Days ago it emerged that U.S intelligence agencies believe Russia acted covertly to boost Trump in the election race.
Mr. Tillerson said he was “honoured” by the nomination, adding that he shared Mr. Trump’s “vision for restoring the credibility of the U.S foreign relations and advancing our country’s national security.”
The announcement had been widely expected, with Mr. Tillerson favoured over high-profile Republicans, including the party’s 2012 presidential nominee, Mitt Romney.
Although he has no formal foreign policy experience, as ExxonMobil chief Mr. Tillerson oversees a company with 75,000 employees and business activities in more than 50 countries.
He has warned of the “catastrophic” impact of unchecked climate change, although his company has been accused of deliberately misleading the public about the role of fossil fuels in global warming.
