Hoeness appointed Wolfsburg director
Hoeness, younger brother of Bayern Munich president Uli, spent 13 years as Hertha Berlin manager before leaving in June.
Wolfsburg, surprise title winners last season, are eighth in the table and 11 points off the top.
"Hoeness will lay the foundations for a successful future," said chairman Francisco Javier Garcia Sanz on the club's website.
"We were convinced we needed to expand our leading structure in order to establish ourselves on a long-term basis in the top spots of the Bundesliga."
Sanz said Armin Veh, who took over from Felix Magath in the close-season, would stay on as coach.
"We have great trust in him," said Sanz.