The 23-year-old Swede, together with Kamui Kobayashi, replace sacked racers Charles Pic and Giedo van der Garde.
"This is a very proud day for me and everyone who has helped make my F1 dream come true," the Swede said in a statement. "I'm already excited about the season ahead, and the first race in Australia in particular.
"It's obviously great for Sweden that we'll have a Swedish driver back on the grid in 2014. This is what I've been working for since I first started racing karts back when I was nine years old, and now I know I'm ready for the step up to F1."
The 23-year-old native of Kumla in central Sweden added that he is in good physical shape after visiting family for the Christmas break, and that the hard work has already begun in preparation for his debut.
"I'm going to be in the factory in Leafield as much as I can before and during the tests in Spain and Bahrain so I can play an active role in helping understand the 2014 car, and what we need to do to unlock its performance. We have a big task in front of us but it's an exciting one, and one both the team and I are ready for," he said.
Ericsson's leap into racing at Formula One level follows four years in GP2, where he finished sixth in last year's championship.
Caterham was the last team to confirm its driver line-up for the forthcoming season. The Formula One season kicks off on March 16th in Australia.
Sweden's last Formula One driver, Stefan "Lill-Lövis" Johansson, drove in 79 races between 1980 and 1991, finishing in second place on four occasions.