The club's sporting director will be Mark Noble, a former captain.
The ex-midfielder played for the Hammers for over 500 appearances.
The new role will allow Noble to work with the club's board of directors, as well as the manager.
Noble is happy to be back. It's a pleasure to be a part of the West Ham United team.
He said that he sees it as a position that he can grow and develop in.
The last two seasons have been a time of great progress, and I want to help us move forward in the right direction.
Noble spent his entire career with West ham after joining their academy at 11.
He completed an entertainment, media and sports leadership course at Harvard Business School this summer after helping the Hammers reach the Europa League semi-finals.
"No one is better qualified to understand West Ham United and its ethos than me," said Hammers boss David.
I know from my dealings with Mark throughout his time as a player that he possesses all of the necessary skills and attributes, and the right personality and character, to be a huge success in this role.
"Mark wanted to spend some time with his family after 18 years of devoted service as a player, but there was never any doubt that he would return to a senior role in the near future."
Simon Stone is a football reporter.
I talked to Mark Noble a few days after his farewell.
On a training pitch that had been named after him, Noble said he didn't know what the future held but his love for West ham sawped out.
It's no surprise that he's been appointed to the sporting director role.
He will be able to use the knowledge he gained at Harvard this summer for the benefit of the club because he knows and trusts both David Sullivan and David Moyes.
While he may have an input on transfers, the negotiations won't be on him because he's not a sporting director.
It will be interesting to see how Noble's role changes over time and whether negotiations eventually become part of his job.