The move on Friday comes less than a week after the Bears completed a disappointing 8-8 season. They parted with Martz, who had an expiring contract, on the same day general manager Jerry Angelo was fired.
"I'm excited to have Mike move into our offensive coordinator role," coach Lovie Smith said in a statement released by the team. "He has been a valuable member of our staff over the past two years and has an excellent track record in the NFL. He was very impressive in his job interview yesterday and shares the same vision I have for our offense moving forward.
"We want to be a strong running team with a big-play pass attack. Mike will call plays for us and continue to have an active role with our offensive line. To complete our staff we will be hiring a passing coordinator who will work with our quarterbacks and an offensive line coach."
This will be the first coordinator job for Tice, who just completed his second season as the Bears' line coach. He spent the previous four seasons as an assistant in Jacksonville and was the head coach in Minnesota for four years after serving as the Vikings' offensive line and tight ends coach.
"Lovie and I share a similar mind-set of what the Bears offense should look and feel like," Tice said Friday. "There will be a toughness about us. We are going to be a powerful run team and we're going to be able to mix in explosive pass plays. It will be important for us to utilize the talents of our players and exploit matchups each Sunday."
The Associated Press contributed to this report.