Cole featured 56 times for England, including appearances at the World Cups of 2002, 2006 and 2010, and he recently brought his 20-year career to a close having spent the past three years at Tampa Bay Rowdies.
The 37-year-old will carry out his new role alongside studying for his coaching badges.
Looking to the future, I want to stay involved in the game and I feel I can offer a lot as a coach, he told the club s website.
To lend my experience to help other young footballers achieve their dreams, just like I did, is a big passion of mine.
Head of youth development Neil Bath added: We are delighted Joe has agreed to return to Chelsea and coach in the academy.
It has always been our philosophy to have a number of ex-players involved in our coaching structure so they can pass on their unique experiences and what it means to play for Chelsea.
Joe will work across a number of age groups and with various staff to ensure he gets to experience the full range of our programme.
I m sure sharing his experiences and football knowledge, combined with his obvious passion for the game, will help enormously with the development of our young players.
