In his new role, Markus Katzer will be able to concentrate 100 per cent on the professional team, including squad planning and scouting, while Rapid II, the academy and youth teams, as well as women's football, are my direct responsibility.
The 43-year-old moves across the city, having been Sporting Director of second division club First Vienna FC 1894 for the past four-and-a-half-years.
During his time there, he oversaw the club's promotion to the second tier.
Katzer, who played over 200 matches for Rapid, has signed an initial three-year contract, and will report into new Managing Director Steffen Hofmann.
Hofmann said: "Markus Katzer was one of several personalities that I had in mind from the outset for the position of Managing Director, Sport. After many discussions with him, I am now completely convinced that we – together with our existing sports management and the coaching staff – will form a strong team in the future that will subordinate everything to the sporting success of our club.
"In his new role, Markus Katzer will be able to concentrate 100 per cent on the professional team, including squad planning and scouting, while Rapid II, the academy and youth teams, as well as women's football, are my direct responsibility."
Katzer added: "Everyone knows my connection to this club and I am also convinced that as a team we have a very good opportunity to make positive sporting headlines again in the future. From now on, I will work with full commitment and look forward to the task with great anticipation and excitement."
Katzer's replacement at First Vienna is former Austria international Andreas Ivanschitz, who steps up from his role as Youth Coordinator.
The squad planning department at Rapid have found success on TransferRoom by using the platform to uncover the availability of players, rather than waste time in the scouting process on targets who will not make the move to the Austrian capital.
Their story can be watched here.