PCC Angus Macpherson chose Mr Herbert as his preferred candidate for the new part-time post.
He received the panel's backing after answering questions from members during a confirmation hearing at the Corn Exchange in Devizes.
Cllr Richard Britton, chair of the panel, said: "The panel welcomed the opportunity to have a discussion with the PCC's preferred candidate. After an extensive private debate, the panel decided to support the Commissioner by confirming Jerry Herbert's appointment.
"The panel congratulates Jerry, wishes him well in the role and looks forward to working with him."
Mr Herbert said: "I am very pleased to have had the opportunity to speak to panel members about my professional background, and that they have confirmed my suitability to take on the role of Deputy PCC.
"I can't wait to get started in the job. My priority will be to engage with the public across Wiltshire and Swindon, to listen to their views about the police service they receive, and to feed that vital information back to the Commissioner to help him in the shaping of policies and priorities."
Mr Macpherson said: "I'm grateful to the panel for endorsing my choice of Jerry Herbert to be my first deputy. The role of Commissioner has grown in complexity and there is every sign that the Government intends Commissioners to take on further responsibilities.
"The time is right to have a deputy who can reach out to our local communities, and the councillors who represent them, and hear what they have to say about their policing needs and the wider criminal justice system."
Six of the 21 people who applied were shortlisted for an assessment day which featured an interview with a panel and a presentation plus question and answer session with an invited audience.
Mr Herbert, who is 56 and married with two grown-up daughters, lives in Salisbury. He spent 30 years in the Army.
He will work 14 hours a week and be paid £18,000 pa. His contract will run until the PCC elections in May 2020.
Biography
Jerry Herbert grew up in South London and gained MAs in philosophy, politics and economics at Oxford, military studies at Cranfield University and business administration at the University of Strathclyde.
During his career in the Army he achieved the rank of Colonel and was deployed extensively worldwide on operations and exercises with the Royal Artillery, with command of up to 600 soldiers. He was awarded the Queen's Commendation for Valuable Service for his contribution to operations in the Balkans. He went on to hold a number of senior management roles within the Ministry of Defence.
After leaving the Army in 2011 he joined a major UK engineering company, Babcock International Group, as an executive director.
Last year he established a company to provide consulting support to the defence and security industry.
His leisure interests include refereeing rugby union matches, football (he supports Crystal Palace), hillwalking (including support for the Duke of Edinburgh's awards scheme), history and current affairs.
The picture shows, from left, Jerry Herbert, Cllr Richard Britton and Angus Macpherson