The Phillies said Monday Sandberg has been hired to manage their Class AAA farm club, the Lehigh Valley Iron Pigs.
Sandberg, 51, spent the last four years managing in the Cubs' minor league system, losing out to Mike Quade for the job of manager of the Cubs.
Sandberg previously managed at Class A Peoria, Class AA Tennessee and Class AAA Iowa. He was manager of the year in the Pacific Coast League last year.
He was a 10-time National League All-Star and a nine-time Gold Glove Award winner. He retired from the Cubs following the 1997 campaign after a 16-season big league career in which he compiled a .285 batting average with 282 homers and 1,061 RBI in 2,164 games.
He was the 1984 NL MVP and was elected to baseball's Hall of Fame in 2005.