Hossain, who now serves as military secretary to President Md Abdul Hamid, will replace Major General Aziz Ahmed.
Aziz took charge as director general of the border guards in 2012 after the change of the force's name and uniform following the BDR mutiny and massacre at their Pilkhana headquarters.
The force, along with securing the borders in past four years, also enforced law and order inside the country during times of political instability.
The public administration ministry issued the appointment order on Wednesday, where it said General Aziz will return to Bangladesh Army.
Aziz told bdnews24.com the Army Headquarters informed him that he has been promoted to lieutenant general and made GOC of Army Training and Doctrine Command (ARTDOC).
Fifty-four years old Hossain, commissioned in 1981, worked in the BGB earlier as a sector commander. He will now also have to serve as the ex-officio chairman of BGB Welfare Trust's 'Shimanto Bank', recently inaugurated by Prime Minister Sheikh Hasina.
Before joining the Bangabhaban, he served the Army Headquarters as the engineer in chief. He was also the commandant at the Military Institute of Science and Technology (MIST) and Bangladesh Ordnance Factory.
The former chief engineer of Dhaka City Corporation served in different Engineers Battalions including commanding 17 Engineers Construction Battalion and Explosive Ordnance Disposal Battalion in Kuwait.
He did BSc in civil engineering from the Bangladesh University of Engineering and Technology (BUET). He also obtained masters degrees in business administration and defence studies.
The courses he received were followed in several countries including China, Turkey and the UK.