Rolston and general manager Darcy Regier will hold a news conference Tuesday at First Niagara Center to introduce Rolston, the team said.
Rolston led the Sabres to a 15-11-5 record after Ruff was fired Feb. 20 following a 6-10-1 performance. Ruff spent 16 years as coach of the Sabres and 10 years as a player.
Before being selected interim coach, Rolston had coached the Rochester Americans, Buffalo's AHL affiliate, since 2011.
The Sabres finished 21-21-6 and missed the playoffs for a second straight year and fourth time in six seasons.
At the end-of-season news conference last week, Regier said more "suffering" might be in store for Sabres fans before the team can once again be considered a contender. He began a rebuilding plan at the end of last season, and Regier hasn't said if those plans will include keeping goalie Ryan Miller and leading scorer Thomas Vanek or trading one or both before their contracts expire at the end of next season.
Rolston was in his second season coaching Rochester when he was hired as interim head coach in Buffalo. He spent seven seasons as coach of USA Hockey's national team development program. During that time, he became the first coach to lead the U.S. Under-18 team to win three gold medals (2005, 2009, 2011).
He becomes the Sabres' 16th head coach.
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