It will be his second stint as coach of the Raiders under owner Al Davis.
Shell was one of the greatest offensive lineman in franchise history as a player and coached the Raiders from 1989-1994 while they were in Los Angeles. He had a record of 56-41 during his former tenure. He was named after University of Louisville Coach Bobby Petrino and Pittsburgh Steelers offensive coordinator Ken Whisenhunt decided they were not interested.
Shell has been working as the senior vice president of football operations and development for the NFL, and will succeed Norv Turner, who was fired on Jan. 2 after two seasons on the job.
Oakland was a disappointing 4-12 last season, despite acquiring wide receiver Randy Moss and running back Lamont Jordan among others.
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Michael Sam cut from the Dallas Cowboys