The bankâs board of directors is to nominate Mr Webber at the next annual general meeting in May 2012 and, if elected, will initially take on the role of vice-chairman at the institution.
He is expected to succeed current chairman Kaspar Villiger the following year, UBS explained.
Mr Villiger said: âWith Axel Weber's nomination, I am pleased that I can present a board member and future chairman who is an internationally renowned personality with an outstanding reputation.
âHe has extremely broad expertise in international finance and banking as well as strong leadership experience.â
Mr Webber was president of the Bundesbanke from April 2004 and April 2011 and was named as a potential successor to Jean-Claude Trichet as head of the European Central Bank.
He was also reported to be in the running to take on the role of chief executive officer at Deutsche Bank after current post-holder Josef Ackermann relinquishes the job in 2013.
Before working at the Bundesbanke, Mr Webber was a professor of economics at various German universities.
By Jim Ottewill