The 38-year-old Pocognoli led Union Saint-Gilloise to the Belgian title last season, and inherits a Monaco side three points off the top of Ligue 1 and with one point from two Champions League games.
"Sebastien Pocognoli arrives in Monaco on the back of a highly successful spell in the Belgian Pro League with Royale Union Saint-Gilloise, where he stood out by combining strong results with an ambitious and attractive style of play," Monaco said in a statement.
Pocognoli led Union SG to their first league title in 90 years, finishing ahead of Club Brugge.
Pocognoli's first game in charge will be a league trip to Angers in a week's time, before hosting Tottenham four days later in the Champions League.
Austrian Hutter was sacked on Thursday after a run of just one win in five matches.