The Power confirmed the long-mooted succession plan on Wednesday, with Carr to take over from Hinkley on a three-year deal from 2026.
"Ken has had open communications with the club over the pre-season and confirmed that 2025 would be his last season as senior coach of Port Adelaide," chairman David Koch said.
"As is his way, Ken has put the club first in acknowledging we have a coach in waiting in Josh Carr who will be primed to lead the club in 2026.
"Without question, Ken is the senior coach for this season."
Hinkley, entering his 13th and final season as Port coach, holds the unwanted record for most AFL games coached without making a grand final - 274.
The 58-year-old has a 60 per cent winning record and has led the Power to seven finals series over his 12 seasons in charge.
He has reached four preliminary finals without advancing to a season decider, though the club has consistently backed him when under pressure.
"I still have a burning desire to lead this club in 2025," Hinkley said.Â
"I'm fresh and recharged and have the privilege of leading a very driven playing and coaching group.
"But come the end of the season, it will be time to hand the baton to Josh, who would have experienced a further 12 months' growth as a senior assistant.
"Without question, Josh will be ready to coach in his own right."
Carr will continue as midfield coach this season, with no official changes to match-day duties, before stepping up.
The club's decision gives clarity to the coaching situation after a whirlwind of speculation about a handover in recent years.
Carr played 207 AFL games with Port Adelaide and Fremantle, including the Power's 2004 premiership.
He coached North Adelaide to the 2018 SANFL premiership and will be the Power's fifth full-time senior coach.
"Whilst it's an honour to have been appointed Port Adelaide's next senior coach, my focus right now is to support Ken, the other coaches and players as best I can as we strive for success this season," Carr said.
Port are bullish about their chances in 2025 - with the addition of talented utility Jack Lukosius offsetting the loss of star defender Dan Houston - after losing a preliminary final to Sydney last year.
The Power open their season away to Collingwood at the MCG on March 15.
