33-year-old McAuley took over the role from Mike Rigg on a temporary basis at the turn of the year.
Rigg left the club to spend more time with his family so McAuley stood in but has now been handed the role on a full-time basis.
It is now McAuley's job to make sure Wednesday's youth development is up to speed and he will be the link between Paul Sturrock and the young players who are breaking into the first team.
Sean McAllister and Tommy Spurr both started games this season and McAuley hopes more youngsters will be given a chance in the future.
He told the club's official site: "I'm delighted I have been given the opportunity. I work closely with the manager in terms of what he's wanting from the scholars."