Former Red Bull and Caterham Formula 1 technical director Mark Smith will join Sauber in the position later this month.
Smith, who has also held the role with Force India and Jordan, will start with Sauber on July 13.
"When I saw the facilities for the first time in Hinwil, I immediately realised the possibilities I would have," Smith said.
"The windtunnel, the supercomputer and the machine shop - everything is on a very high technical level. And not to forget the competence of the team.
"These facts were compelling reasons and arguments for me changing to Hinwil.
"The potential of Sauber is enormous, which is not self-evident in a constantly changing Formula 1 world.
"The factory in Hinwil has all the requirements to be competitive in Formula 1."
Having failed to score a point during a disastrous 2014 season, Sauber sits seventh in the constructors' championship this year.
"After talks with the technical committee, we have searched for a technical director - and found Mark," Sauber boss Monisha Kaltenborn said.
"Mark is an engineer with a lot of experience in Formula 1.
"Above all, he knows the environment in which privateer teams must work and the challenges that are there - and how important it is to keep calm and keep things in perspective.
"With us he finds technical possibilities on a very high level."