"As (Yankees owner) George Steinbrenner has always said, 'Don Mattingly is the quintessential Yankee,'" said team president Randy Levine. "We are so happy to persuade him to coach the Yankees full-time here."
The Yankees also announced that third base coach Willie Randolph be the team's bench coach, replacing Don Zimmer. Lee Mazzilli, who is a candidate for the Baltimore Orioles' vacant managerial job, moves from first base coach to third base coach, and Luis Sojo joins the staff as first base coach.
Mattingly, 42, replaces Rick Down, who was released following a postseason in which the Yankees hit just .261 overall and .228 with runners in scoring position.
As a player, Mattingly was a six-time All-Star with a .307 career batting average. He had 442 doubles, 222 homers, and 1,099 RBI in a 14-year career spent entirely with the Yankees.
He also won 10 consecutive Gold Gloves.