Erasmus will now be tasked with leading the Guinness PRO12 side back to former glories.
"We are delighted to announce Rassie Erasmus as Munster Rugby's Director of Rugby," said Fitzgerald.
"In recruiting Rassie we are securing the services of a world-class individual who was the stand out candidate for this newly created position.
"In addition to his extensive playing and coaching experience Rassie's current role has afforded him the opportunity to develop his skill-set further, garnering invaluable knowledge and expertise while implementing an all-encompassing rugby programme which will be key to this role."
Erasmus will oversee all rugby matters from the academy through to the senior team but will be very much an on-field influence on the first team.
"It is an opportunity which comes with a huge responsibility, not only to the club who has a proud 137-year history, but also the supporters and the wider community," he said.
"It is a challenge which I humbly accepted but with a clear desire to use all my past experience as a player, coach and administrative high performance manager, to make Munster Rugby one of the top rugby clubs in Europe."
But head coach Anthony Foley - who signed a new one-year contract earlier this year - will definitely remain at the club as well according to Fitzgerald.
"Anthony will definitely be here next season, he has signed his contract," added the CEO.
"The model we have looked at, and based our research on, are the ones that have a head coach working with a director of rugby."
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Guinness PRO12 Munster News
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