Woodson said he looks forward to working for Knicks head Coach Mike D'Antoni.
"I consider Mike D'Antoni to be one of the top coaches in our game and I am thankful for this opportunity," Woodson said. "I'm excited to rejoin this great franchise where my professional career started and will work to build off of the success they had here last season."
Woodson produced a 206-286 record as coach of the Hawks from 2004-10. He also has been an assistant for Milwaukee, Cleveland, Philadelphia and Detroit.
He played 11 NBA seasons for the Knicks, New Jersey, Sacramento, Los Angeles Clippers, Houston and Cleveland. He averaged 14.0 points in 786 career games.