Krause will evaluate players on all levels, including amateur players for the First-Year Player Draft. He will report to Jerry Dipoto, who oversees the club's scouting and player development departments after serving as interim general manager last year.
"Jerry brings tremendous experience, a creative mind, unbridled passion for the game of baseball and a no-job-is-too-small attitude to the table every day," Dipoto said in a statement. "We can all learn from him and I look forward to exploring the different ways in which he can positively impact this organization."
Krause had been working as a scout for the White Sox where he restructured their scouting in the Dominican Republic and Venezuela. He has also worked as a scout for the Indians, A's, Mariners, Yankees and Mets.
Prior to that, Krause served as general manager of the NBA's Chicago Bulls from 1985-2003. The organization won six NBA championships during his tenure.