The councillor for Garscadden and Scotstounhill will head up a new SNP team in Glasgow City Council which was elected at yesterday's SNP annual meeting.
He will replace Govan councillor Allison Hunter in the top spot.
As reported in the Evening Times last week, Mr Hendry, who played a visible role in the party's election campaign, was tipped for the post after the future of Ms Hunter was thrown into question when the SNP lost out in the council elections.
But critics have said the results are not seen as a disaster for the party, which, despite Labour gaining an overall majority, won an additional seven seats, increasing its presence to 27 out of 79 council seats.
Councillor Billy McAllister, who represented Canal ward, was elected his deputy.
Mr Hendry's former post as Business Manager went to Councillor David McDonald, who represents Greater Pollok, and Ms Hunter was elected deputy business manager and group whip.
Mr Hendry said he was looking forward to the challenges of holding Labour to account and ensuring the council connected better with the people of Glasgow.
He added: "Our work begins now to put in place a team from this talented group which will continue to hold Labour to account and start developing ideas to help this great city.
"Our positive vision for Glasgow saw our group increase to 27 councillors – more than one-third of the total."