The club made the announcement on Monday, six days after Iraola confirmed he would walk away from the Vitality Stadium when his contract expires this summer. The 49-year-old Rose has been out of work since being sacked by RB Leipzig in March 2025.
Bournemouth said in a statement: "AFC Bournemouth is delighted to confirm the appointment of Marco Rose as the club's new head coach on a three-year contract, which will begin following the conclusion of the 2025-26 season.
"The 49-year-old arrives on the south coast with a wealth of experience at the highest level of European football, having managed Red Bull Salzburg, Borussia Mönchengladbach, Borussia Dortmund, and RB Leipzig."
Rose began his coaching career at his boyhood club Lokomotive Leipzig in 2012 before joining the Red Bull organisation and working his way up to first-team manager at Salzburg in 2017, where he won back-to-back Austrian Bundesliga titles.
He returned to Germany in 2019 with Mönchengladbach, then moved to Dortmund, where he worked with Erling Haaland and Jude Bellingham. After one season at Signal Iduna Park he joined Leipzig, winning the DFB Pokal and Supercup before his dismissal last year.
Ipswich Town's Kieran McKenna had also been on Bournemouth's shortlist, but Rose was the preferred candidate throughout. He will have no Premier League experience as either player or manager when he takes charge this summer.
Iraola's departure leaves Bournemouth in the market for a number of other clubs. Crystal Palace are among those reported to be interested in the Spaniard, with a lucrative offer said to have been tabled.
Bournemouth are currently unbeaten in 13 matches and sit eighth in the Premier League, level on points with Chelsea, with five games remaining.