The new academic institute would draw on research from diverse disciplines including geology, geography, marine science, mathematics, statistics and surveying.
Dr Stirling, an Otago graduate, gained a Bachelor of Science in geography and geology in 1983. He earned a PhD in Geological Sciences at the University of Nevada, Reno, fifteen years later. He joined the Institute of Geological Sciences, which became GNS Science in 2002.
Otago University said Dr Stirling's research focused on earthquake geology, geomorphology, seismotectonics and seismic hazard modelling.
"His experience in the latter field has included 15 years as leader of the New Zealand seismic hazard mapping project," the university said in a statement today.
Dr Stirling said he was excited about the new position.
"I'm looking forward to pushing research frontiers in multi-disciplinary earthquake science and associated hazards, and helping to train top-quality undergraduate and postgraduate students in these fields."
He said he wanted to research ways of improving how earthquake hazards were quantified in New Zealand and abroad.
"I'm also bringing my GNS Science and overseas collaborations with me, which will assist the University's goal to establish itself as an international hub for fault and earthquake science," he said.
The chair in Earthquake Science would be based in the university's geology department.
Head of the department, Professor David Prior, said he and his colleagues were "really excited" Dr Stirling had accepted the position.
The university said "very generous" donations from individuals and organisations helped establish the new position.
University Vice-Chancellor Professor Harlene Hayne said Dr Stirling had an impressive background across many areas of earthquake-related science.