Lambert has been with Metro for 35 years. He most recently served as an executive vice-president, and before that he was Metro's police chief.
Metro board members selected Lambert as interim CEO when George Greanias resigned in late 2012.
Board member Gilbert Garcia says there's been a lot of positive feedback from the community on Lambert's performance.
"With all these such significant issues facing us, the continuity, I think, just makes such great sense."
During his year as interim CEO Lambert kicked off a project to re-imagine Houston's bus system. He also presided over the opening of Houston's new light rail line on the northside. This fall Lambert will oversee the rollout of the new East End and Southeast lines.
"In the last year I think it's been very clear as to the expectations of the board. The staff has moved forward to implement those expectations and we look forward to the opportunity to continue to build on that."
Metro's board will now enter into negotiations with Lambert to hammer out a contract. Lambert currently makes $235,000 a year.