Glasner will succeed current coach Bruno Labbadia whose contract runs out at the end of the season and was not renewed.
The 44-year-old Glasner joins from LASK Linz, whom he took over in the Austrian second division in 2015 and led to a Europa League qualifying spot within a few seasons.
"Talks with him were positive and confirmed the feeling we had that he was the right choice for Wolfsburg to take the next step," Wolfsburg CEO Joerg Schmadtke said in a club statement.
"We are getting an outstanding coach and a real team player."
For Glasner, who has also coached Ried in Austria and was an assistant coach at RB Salzburg in 2012-14, it is the first coaching position outside his native country.
"The switch to the German Bundesliga is a huge challenge which I am ready to tackle and look forward to," he said.
Wolfsburg, battling to secure a European spot next season, are in ninth place on 46 points, four behind the last Europa League spot, with four games left to play.
(Reporting by Karolos Grohmann; Editing by Christian Radnedge)
