Currently based in Eleven Brindleyplace, the group will move to the new library next month with IoD members and supporters of the Library of Birmingham Trust sharing exclusive use of a 'Supporters Lounge'.
The lounge will be located on the same floor as the library's business section and it is intended the two organisations will be mutually supportive.
Directors will be able to use the meeting rooms and conference facilities at the library and enable the IoD to run locally its certificate and diploma in company direction qualifications.
The relocation could be seen as a key move by the library to get more guaranteed income in as it faces budget challenges resulting in proposed job losses and a cut in opening hours.
IoD regional chairman Jason Wouhra said: "This is a fantastic new development for us and we are looking forward to working closely with our new colleagues.
"We see a good fit as professional development and life-long learning are at the core of what we do.
"In essence, we see both the Library of Birmingham and the IoD to be very much about the assimilation of knowledge.
"As a national organisation, we attract members from all over the UK who come here for meetings and I can't think of a better way to show off and up talk the City of Birmingham."
Brian Gambles, director of the Library of Birmingham, added: "I am sure this will prove to be a positive and mutually beneficial partnership.
"I hope IoD members will be able to take full advantage of the library's excellent facilities and our business section will benefit from having the IoD in close proximity."