This is in lieu of Børge Brende, president of the WEF stepping into this role.
Schwab has led the world's foremost business conference - held annually in Davos, Switzerland - since 1971.
He will now preside as chair of WEF’s board of trustees.
The organisation is moving from being a founder-managed organisation to one where a president and managing board assume full executive responsibility.
This year, the organisation hosted more than 50 heads of state, policymakers and business leaders.
The WEF, owned by a charitable organisation, attracts an annual revenue of €500m, with firms paying up to $658,000 a year in membership fees.
