Konadu has signed a two-year deal with the Porcupine Warriors on Monday in Kumasi.
He has replaced Kjeti Zachariassen who was sacked by club after disappointing campaign in the CAF Inter-club competitions, which saw Asante Kotoko miss out on the group stage of both CAF Champions League and the CAF Confederation Cup.
He has therefore returned to the club which he guided them to the Ghana Premier League triumph in the 2011-12 season.
Maxwell Konadu is a cult hero at Asante Kotoko, having won the league with the club as both player and coach.
He joined Asante Kotoko from Wa All Stars in 2011 as an asistant coach. He was promoted as head coach after his boss was sacked and became an instant hit winning the Ghana Premier League in his debut season in charge.
Konadu after just a year in charge vacated his post following his appointment as the assistant coach of the Black Stars in 2012.