Krause is joined in the 2017 class by Tracy McGrady, Bill Self, Rebecca Lobo, Muffet McGraw, Robert Hughes, Mannie Jackson, Tom Jernstedt, Zack Clayton, Nick Galis and George McGinnis.
Krause passed away last month at the age of 77.
Krause was the Bulls' general manager for nearly 20 years, constructing the rosters that won six championships in eight seasons.
Krause will join other 1990s Bulls figures Phil Jackson, Michael Jordan, Scottie Pippen, Dennis Rodman and Jerry Reinsdorf in the Hall of Fame.
"I know this would have meant the world to Jerry. It only further validates his legacy and what we all knew about his body of work with the Bulls," Reinsdorf, the Bulls' chairman, said in a statement Saturday. "I know it is bittersweet for Thelma and his family, as this means a great deal to them as well. It's a shame that he won't be here to enjoy this honor, but I know his family is extremely happy."
Pippen tweeted this after the announcement:
It's a shame Jerry isn't around to enjoy this day but I'm glad he's in. A very deserving honor that surely means a lot to his family. https://t.co/3m5nNv8gLJ