The 52-year-old – who also becomes a board member of the Dragons organisation – is fully responsible for all rugby matters on and off the pitch and will contribute to the wider strategic direction of the Dragons long-term.
Ryan will take up his new role this summer from the RFU, where he has been head of international player development since 2016.
“It was always going to take a unique challenge to bring me back in to the club environment and following my discussions with David Buttress and the WRU I’m hugely excited about what lies ahead,” he said.
“I will take a hands-on role with the playing department and use my influence as a board member to address various issues so that the Dragons are set up from top to bottom to ensure everything is geared around the on-field and off-field success of the region.”
As director of rugby of Gloucester for four years from 2005, under Ryan the Cherry and Whites lifted the European Challenge Cup in 2006 before reaching the Premiership final in 2007, also finishing top of the table in 2008 and making the European Cup quarter-finals.
Ryan was a respected analyst for Sky Sports and spent a brief spell at Gwent as a consultant to the Dragons in 2012, before three seasons as director of rugby at Worcester.
At the Warriors he led the Sixways side to promotion back to the English top-flight at the first time of asking, as well as winning the British & Irish Cup in 2015.
“I’m delighted to announce Dean Ryan as our new director of Dragons Rugby and to welcome him on to the board,” said Dragons executive chairman Buttress.
“After an extensive and competitive process, it became clear Dean has the experience and skill-set to offer something greater and more beneficial to the Dragons and this new role we’ve created will see him have a voice at board level and an input across the organisation.
“Our immediate need is the on-field success of the first team and Dean will lead the coaching team in preparation for next season as he gets to know the players and staff in the playing department.
“We are excited to see the impact Dean can have on rugby in Gwent for the Dragons.”