Yohannes, formerly coach of Ethiopia’s under-17 team, had most recently been working with top-flight club Dedebit in the Ethiopian Premier League.
Although Yohannes has limited international experience, the federation kept its promise to appoint an Ethiopian following the failure of Portugal’s Barreto.
Baretto left last week halfway through a two-year contract after Ethiopia finished bottom of its group in the main qualifying competition for this year’s African Cup of Nations, with just one win from six games.
The federation said Yohannes would start work in the next few days after finalizing his contract, details of which weren’t released.
Qualifying for the 2017 African Cup begins in June.