"This is a huge season for Connacht. We have made some great signings and it is an honour to be asked to captain the side," said Farley.
Connacht coach Michael Bradley said that Farley was a natural leader.
"He has been one of the most consistent players over the past few years and leads by example," said Bradley.
Farley joined Connacht from Swansea, having had spells with L'Aquila in Italy and Otago in New Zealand before being drafted into the Queensland Reds squad in 2002.
Farley said that Connacht's August 21 clash with South Africa will be a great way to start the new campaign, with two home fixtures with French side Castres to follow before a trip to Harlequins in London.
Season tickets are currently on sale from the Connacht Branch. The westerners kick off their Magners League run on September 22 with a home game against Newport Gwent Dragons.