This paper presents the design and operating principle of a newly developed dual-mode pulsed plasma source capable of operating either as a pulsed vacuum-arc plasma source or as a pulsed magnetron sputtering system. Switching between the two operating modes is achieved by changing the magnetic-field configuration within the plasma source, modifying the activation sequence of the trigger plasma injectors and the energy supplied to the trigger discharges, as well as adjusting the voltages applied to the main electrodes of the source. The proposed technical solution simplifies significantly the design of ion-plasma deposition systems intended for hybrid (combined) coating technologies. Experimental evaluation of the dual-mode pulsed plasma source in a hybrid coating-deposition process, in which the vacuum-arc mode is employed during the initial ion-cleaning stage and the magnetron mode during the subsequent coating-deposition stage, demonstrates that the deposited coatings exhibit high adhesion to the substrate and are free of cathode-material microdroplets, indicating the high quality of the deposited coatings.