In April, reports indicated that Satterfield would "step down soon".
The US has named Ambassador Mike Hammer as the new Special Envoy for the Horn of Africa, Secretary of State Antony Blinken announced on Twitter on Wednesday.
Hammer will replace will succeed Ambassador David Satterfield.
"I am grateful to Ambassador Satterfield and look forward to working with Ambassador Hammer in continuation of our diplomatic efforts in the region," Blinken said.
In April, reports indicated that Satterfield would "step down soon". This was barely three months after he took over from Jeffrey Feltman, who stepped down in January after about nine months on the job.
Hammer will have to contend with multiple crises in the region, including conflict in Ethiopia that has sparked accusations of atrocities on both sides, and economic and political turmoil in Sudan following an October coup.
"His appointment underscores our abiding commitment to diplomatic efforts in the region, most urgently in support of an inclusive political process towards peace, common security, and prosperity for all people in Ethiopia," Blinken said.
- Additional reporting by Reuters.