Alexandre de Rothschild, 37, will be appointed as executive chairman subject to shareholder agreement.
The current chairman, David de Rothschild, will step aside allowing his son to take his place, according to a statement released on Tuesday. David de Rothschild will join Rothschild & Co's Supervisory Board.
David de Rothschild said: "This change in leadership at Rothschild & Co has been carefully prepared over time. Alexandre, with 15 years of experience, has demonstrated deep knowledge of all our businesses and his ability to build relationships. I believe that those who make our firm so successful are as delighted as I am about the family continuity at the head of the firm."
Alexandre de Rothschild said: "I look forward with great enthusiasm to working with this team to continue the firm's development in the direction so clearly established by my father."
Alexandre, who is currently executive deputy chairman at Rothschild, first joined the bank during the financial crisis in 2008, moving from private equity firm Argan Capital, where he was a manager for around three years. Prior to that, he worked briefly for the now defunct bank Bear Sterns.
Rothschild & C0. is one of the oldest banks in the world. It was founded over 200 years ago by Mayer Amschel Rothschild, after which five of his sons established banking businesses around Europe.
Rothschild & Co. is the financial holding company for all the family's banking interests, covering investment banking, corporate banking, private equity, asset management, and private banking. It had a half-year revenue of €852 million (R12.6 billion), according to its most recent results.
The firm has roughly 2,800 employees in 40 countries, according to its website.