Otto Addo is currently the assistant coach at rival club Borussia Mönchengladbach but will join Lucien Favre's technical staff next season.
A post by Borussia Dortmund on Twitter said that the club was “delighted to announce the return of former Borussia Dortmund player, Otto Addo, who will serve as an assistant coach focusing on youth development!”
The former Dortmund attacking midfielder's new role will see him also serve as a link between the senior team and the youth team.
He will oversee the promotion of youth players to the first team.
The 43-year old spent six seasons at the Signal Iduna Park, scoring 16 goals in 98 Bundesliga appearances and winning the 2002 title.
He remains a fan favourite for a moment of magic produced in a UEFA Cup game in September 2003, when he scored a spectacular goal with a torn cruciate ligament that was later voted by ARD-Sportschau viewers as "Goal of the Year".
Otto Addo represented Ghana at the FIFA World Cup in 2006, making two appearances at the Mundial as the West Africans reach the round of 16 in Germany.