The former Newcastle, Nottingham Forest and Wolfsburg boss, who managed England in 2006-7, will work with head coach Jordi Cruyff.
The two men know each other from Manchester United when McClaren was assistant to Alex Ferguson and Cruyff was playing between 1999 and 2001.
"It's a pleasure to start working with Jordi," McClaren said in a statement on the club's website.
"I have huge respect for such a well-known club both in Israel and in Europe and I intend to help Jordi and the players achieve success for the fans this season."
The statement did not say how much time McClaren would spend in Israel or what exactly his role would entail.
Israel's most historically successful club, Maccabi Tel Aviv finished second last year.
They began this year's campaign with a 3-0 defeat at home to Beitar Jerusalem Sunday.
McClaren was sacked as England manager in 2007 after only a year having failed to qualify for the 2008 European Championships.
He has since managed in Europe and England, winning the Dutch premier division with FC Twente.
His most recent role saw him sacked as Newcastle manager in the 2015/2016 season when they ended up being relegated.
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
