Bundesliga club Hamburg have confirmed that Frank Arnesen will become their new director of sport from July.
Arnesen will join from Chelsea in the summer after agreeing a three-year contract with HSV.
His appointment was confirmed at a press conference in the city on Sunday.
"I am delighted that we have found this fantastic solution," commented Hamburg's chairman Ernst-Otto Rieckhoff. "Frank Arnesen has not only the aptitude that is very meaningful to us for our future thanks to his experience as a manager at top clubs in Europe, but in particular due to his focus on youth development."
Arnesen fills a void in Hamburg which has never truly been occupied since Dietmar Beiersdorfer resigned just over 18 months ago.
Bastian Reinhardt was appointed in the summer, but has not really impressed club bosses and he will take on a lesser role from next season.
"Bastian deserves respect for his work and his loyalty in recent months," added Rieckhoff. "I am glad we have managed to find a solution together with him which is right for everybody involved - for HSV and particularly for Bastian."
Arnesen will bring Chelsea's chief scout Lee Congerton with him in the summer and he will be employed as Hamburg's technical director.
"I am honoured by HSV's interest and the conviction shown to me by the people in charge of the club," Arnesen said.
"HSV is a special club with a great tradition and fantastic conditions to work in. I am convinced that we will develop something huge with the energy we have got and with the right decisions."