The former Connacht, Richmond and Stade Francais forward joined the coaching team in Galway in 2006.
The Irish Province now regularly challenge for a top six place in the PRO12 and last season they recorded one of the results of the European Cup in recent seasons by beating Toulouse in France.
In 2007, McFarland linked up with Eric Elwood to guide the Ireland U20s to a grand slam of victories in the Six Nations Championship.
His international coaching experience extended to stints with the Emerging Ireland tours and the Ireland Wolfhounds in January of this year.
Commenting on the appointment, Glasgow Warriors head coach Gregor Townsend said: "Dan has done a fantastic job at Connacht over the last nine years and is a high quality technical coach.
"He has an excellent reputation and we believe that he will play a key role in helping to develop a number of our younger players, which he has done really well at Connacht.
"It's great news that he's joining us and I'm sure he will be an excellent addition to our coaching team next season.”
Dan McFarland added: "Connacht has been such a large part of my life for such a long time, but I'm excited about this next stage of my career.
"Glasgow regularly finish in the top four in the GUINNESS PRO12 and have made huge progress over the last few seasons, reaching their first major final last year.
"I'm looking forward to moving to Glasgow with my family at the end of the season and working with the players and coaches over the summer, to prepare for the new campaign.”