The 42-year-old, sacked by Mönchengladbach in November, was targeted following Erik Gerets's decision to step down at Wolfsburg and take over at Galatasaray SK last week, and has signed a two-year contract.
"Holger Fach is an expert and has Bundesliga experience both as a player and as a coach," said managing director Thomas Strunz. "We are very optimistic he will help us achieve the goals we have set ourselves and lead us to a place in Europe."
Wolfsburg have also completed the signing of German Under-21 international Mike Hanke from FC Schalke 04 for an undisclosed fee. The 21-year-old, who is still negotiating his contract, is Wolfsburg's third summer signing following Peter Van der Heyden and Matthias Langkamp. Hanke is yet to make his senior international debut but is preparing for the FIFA Confederations Cup with the Germany squad.
In four seasons in Schalke's first team, Hanke scored seven goals in 58 league games - although five of those came in 2003/04. He joins Wolfsburg as German international striker Thomas Brdaric returns to Hannover 96 after a solitary campaign at the Volkswagen Arena.
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