Vaughn Solomon Schofield was named Tuesday by Prime Minister Stephen Harper to replace Gordon Barnhart, who has held the post since 2006.
"Mrs. Schofield is a businessperson, very involved in the community and a great supporter of the Canadian Armed Forces," said Harper.
"So she has really the entire range of activities over the years in Saskatchewan, in business, the arts, education, community service, and I think she will make a great representative for the province and people of Saskatchewan."
Schofield is an honorary lieutenant-colonel in the military.
Born in Regina and educated at the University of Saskatchewan, she is a member of several community organizations including St. John Ambulance and the Hospitals of Regina Foundation. She was awarded the Saskatchewan Volunteer Medal in 2009.
Schofield is president and chief executive of Western Group of Companies. She is also an honorary director of the Saskatchewan Roughriders football team.
She said she's honoured to be named lieutenant-governor.
"I'm looking very much forward to serving the people of the province and working with the government in support of the monarchy," Schofield said.
Lieutenant-governors are appointed by the governor general on the recommendation of the prime minister. They serve five-year terms, during which they act as their provinces' vice-regal representatives.
Saskatchewan Premier Brad Wall welcomed the appointment.
"Vaughn Schofield has contributed to the well-being of our province," Wall said.
"As honorary lieutenant-colonel of 16 Saskatchewan Service Battalion, she provides leadership and support to the unit and to the Canadian Forces reserve, in particular to those who have returned from Afghanistan."
Wall also praised the contribution made to Saskatchewan by Barnhart and his wife, Naomi.
"They have touched so many people with their warmth and generous spirit, but none more than the youth of our province through the Lieutenant Governor's Leadership Forum."
A date for the installation for the new lieutenant-governor has not yet been announced.