Ischinger, 61, is currently Germany's ambassador to the United Kingdom, and an expert on the Balkans.
Ischinger's apppointment comes after a Western-backed UN Security Council resolution was withdrawn on July 20 amid Russian objections. Russia has veto power in the Security Council.
The UN resolution would have given Kosovo internationally supervised independence.
On July 27, Serbian Foreign Minister Vuk Jeremic unveiled a plan to restart negotiations on the future of Kosovo.
Jeremic, speaking in Washington, said the plan would guarantee the ethnic Albanians in Kosovo "the broadest possible self-governance."
(compiled from agency reports)