After he and the club's Supervisory Board agreed terms, Schmadtke will assume his responsibilities as Wolfsburg Director of Sport this summer.
Frank Witter, Chairman of the Board of Directors, said: "In Jörg Schmadtke, we've found the right man for the job of restructuring the professional side of the club. He'll make sure that we return to winning ways with characteristic competency, passion and engagement. Jörg Schmadtke impressed us during talks, and his previous success in the Bundesliga is very impressive. As a person, he also fits in perfectly to VfL Wolfsburg."
Schmadtke said: "I'm really excited about the task ahead. We'll closely analyse the current lie of the land and want to give the team some stability so that they can quickly regain ground in the Bundesliga and play successful football."
General Managers Wolfgang Hotze and Dr Tim Schumacher said: "There's nobody better suited to this position. In Jörg Schmadtke we've found the right man to be in charge of the sporting side of Wolfsburg. Employees, fans and the team can look forward to a Director of Sport who is passionate and hungry for success."
Schmadtke most recently occupied the sporting director role at 1. FC Köln, who were promoted into the Bundesliga in 2014 and qualified for the UEFA Europa League following an impressive 2016/17 campaign. Prior to that, the 54-year-old was sporting director at Hannover 96 (2009-2013) and Alemannia Aachen (2001-2009). A former goalkeeper, Schmadtke made 266 top-flight appearances for Fortuna Düsseldorf and SC Freiburg.