Foley racked up more than 200 caps for Munster during his career and has spent the past three years in a range of capacities at Thomond Park.
He will take over from Australian Laurie Fisher who completes a three season term with the province.
Foley has also been head coach of the Munster U20s and the Munster British & Irish Cup squad that reached the inaugural final.
Earlier this season Foley was appointed forwards coach of the Ireland Wolfhounds.
"Laurie's experience has been hugely beneficial to Munster's squad and management," said Munster Chief Executive Garrett Fitzgerald.
"It's now time for Anthony to take on this responsibility and to impart his experience and great knowledge of the game to the Munster players. We wish him well in his new role that commences on July 1st."
Guinness PRO12
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