PRINCETON, N.J. (AP) _ Former Federal Reserve Chairman Paul Volcker was named Wednesday to a professor position at Princeton University's Woodrow Wilson School of Public and International Affairs.

Volcker, who graduated the Woodrow Wilson School in 1949, is the first incumbent of the Frederic H. Schultz Class of 1951 Professorship of International Economic Policy.

The former Fed chief, whose ambitions had remained unclear following his departure from the job last August, said he declined professor offers from other universities, including Harvard, where he received a master's in political economy in 1951.

''I had discussions with a number of Ivy League and non-Ivy League universities,'' he said. ''I think it is fair to say that there was a certain pull here for my alma mater, though I have a another alma mater in the Ivy League.

''I felt comfortable here. The school combines my interest in the public service and in economic policy.''

Volcker, who had been head of the nation's central bank since 1979, said he has not severed ties with Wall Street and that his business connections will prevent him from teaching full time at Princeton.

''I'm delighted to have the opportunity to get the kind of intellectual stimulus you can get here and I hope to contribute a little bit,'' said Volcker. ''I'm somewhat intimidated by the fact that I'm having to go back and do a little teaching. I'm hoping for a little assistance to help me through those early stages.''

Volcker said he intends to spend the coming months meeting with graduate students and attending a faculty seminar on interntional trade.

During the 1988-89 academic year he plans to teach both semesters at the graduate and undergraduate levels.