He also guided Palace to their first major silverware when they beat Manchester City in the 2025 FA Cup final.
Glasner is Forest’s fifth manager in the last year after Nuno Espirito Santo, Ange Postecoglou, Sean Dyche and Vitor Pereira.
“I’m delighted to join Nottingham Forest as head coach,” Glasner said.
“From my very first conversations with the owner and the leadership team, it was evident to me that they have a clear vision for this football club and complete trust and belief in me and my staff to build a strong future together over the long term.
“Nottingham Forest is a club with incredible prestige and history, a two-time European Champion with one of the most passionate fan bases in football.
“Our aim is to build a team that can help take the club to the next level in the years ahead and that our supporters can be proud of.”
Glasner succeeds former Wolves boss Pereira, who was surprisingly sacked last week.
Glasner had previously been linked to AC Milan, a role then filled by former Manchester United boss Ruben Amorim, and, more recently, the vacant Germany head coach role after Julian Nagelsmann stepped down following their World Cup exit.
The 51-year-old Austrian, who joined Palace in 2024, steered Eintracht Frankfurt to the 2021-22 Europa League crown.
Forest finished 16th in the Premier League last season, one place and one point below Palace.
“In our discussions with Oliver, it was clear that we share the same vision, the same ambition and the same relentless desire to succeed,” Forest owner Evangelos Marinakis said.
“He has consistently demonstrated throughout his career that he can build outstanding teams and deliver success against the strongest competition.
“Our ambition is not simply to compete, our ambition is to win, to challenge for major honours and to create a football club that our supporters can be proud of for many years to come.”
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