Holland has been appointed Blues head coach in place of Vern Cotter, who will leave at the end of this season to take up the equivalent role at Australia's Queensland Reds, replacing Les Kiss.
It is the latest move in an 18-year professional coaching career for 53-year-old Holland.
He has held assistant roles with Munster in Ireland and the Canterbury Crusaders and Wellington Hurricanes in Super Rugby, before four seasons as Hurricanes head coach.
Late last year, Holland announced he wouldn't renew his two-year contract as an assistant to then-All Blacks head coach Scott Robertson.
Robertson was subsequently sacked by New Zealand Rugby following mixed results and replaced by Dave Rennie.
Holland said his initial focus would be on his current role, having rejoined the competition-leading Hurricanes this year as an assistant coach.
"But the opportunity to join the Blues from 2027 is incredibly exciting," Holland said.
"It's a club with a proud history and I see huge potential to add to that legacy."
The Hurricanes ensured they'd remain top after six rounds with a 50-7 thrashing of the Otago Highlanders in Dunedin on Friday night.
Winger Fehi Fineanganofo scored three of their eight tries while All Blacks scrum-half Cam Roigard bagged a brace.
The Hurricanes are averaging more than six tries per game, based around an attacking style.
Midfield back Jordie Barrett said they wanted to be "ruthless" against the Highlanders, who they have beaten in 10 successive matches dating back to 2020.
"It's really pleasing to put that score on against a good side," All Blacks back Barrett said.
"We got a few points on them and we just tried to keep being ruthless with the ball and not give them a sniff."