Hussey, who represented Australia in 79 Tests, 185 ODIs and 38 T20Is, will see his new role include working with the batters ahead of 2027 Ashes and ODI World Cup as well as a T20 advisor for the 2028 Los Angeles Olympics and T20 World Cup in Australia and New Zealand.
He has already spent time with the Australia team under head coach Andrew McDonald in recent years, but was unavailable to commit long-term due to his coaching roles at Chennai Super Kings in the IPL and Welsh Fire in the Hundred.
Hussey had turned down a position to join the England staff in the Test team under new head coach Stephen Fleming, with Australia sealing a deal ahead of their home summer.
"I am extremely excited about being a part of the team in a more formal and meaningful role in the coming years," Hussey said.
"This team has achieved so much in recent times, to which I hope I can add value to the coaching and playing groups ahead of what will be an exciting and challenging period."
McDonald added: "Mike has been a highly valued part of our staff in the past and brings a considerable skill set which is complementary to the coaches and players," he said.
"Not only is his expertise as a player and coach across multiple formats, competitions, countries invaluable, so are his qualities as a person."