John Galliano, 53, had been keeping a low profile since he was sacked from Christian Dior in 2011, after a video of him using anti-Semitic language in a drunken tirade was released.
The British designer is currently creative director at Russian perfumery chain L’Etoile.
He also spent a three-week stint at designer Oscar de La Renta last year.
“Margiela is ready for a new charismatic, creative soul,” Renzo Rosso, whose OTB group controls the house, told industry journal Women’s Wear Daily.
“John Galliano is one of the greatest undisputed talents of all time. I look forward to his return to create that fashion dream that only he can create,” he added.
John Galliano is considered to be one of the most influential designers of his age and has been awarded the title of British Fashion Designer of the Year four times.
He spent 15 years at Dior, but was sacked after footage of his drunken tirade was released.
A Paris criminal court found John Galliano guilty of proffering anti-Semitic insults in public, an offence under French law, on two occasions in February 2011 and October 2010.
John Galliano apologized and blamed his actions on drink and drugs.
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