The 45-year-old, who spent 14 years with the Robins, returns to Ashton Gate to work in the academy, overseeing the recruitment of players aged 13 to 21.
He told the club's official website: "This football club has meant so much to me over the years; I've put my heart and soul into it and it's great to be back.
"I've learnt a lot over the past eight years, setting up soccer schools for youngsters and scouting for Everton, even taking David Moyes to many games in Malaga.
"This new role is something that really excites me; it's what I enjoy most about football. Discovering good young players and pushing them in their development."