Marsch is the current manager of Leipzig’s sister club in Austria, RB Salzburg, and he will arrive at the Red Bull Arena on a two-year contract.
Leipzig’s current manager Julian Nagelsmann will leave to join Bayern Munich at the end of the season on a five-year contract.
Marsch is no stranger to Leipzig, having spent the 2018/2019 as an assistant coach at the club during the tenure of Ralf Rangnick.
The former United States of America international led Salzburg to the Austrian league and Cup last season.
RB Leipzig CEO Oliver Mintzlaff said of the 47-year-old manager: "With Jesse Marsch we were able to sign our dream candidate as the new head coach and quickly fill the most important position in the sporting field with a top coach.
"Jesse has done an excellent job in all of his previous positions and has developed step by step. It is naturally a great advantage that he has already worked for RB Leipzig for a year.
"Jesse knows the club, the city of Leipzig and above all our club and game philosophy. In addition to his qualities as a coach, Jesse is characterised above all by his positive and ambitious manner he can inspire people in and around the club extremely and take them with him.
"We look forward to working with Jesse Marsch so that we can continue on our chosen path with him and continue to develop the club."
