Pearl had been out of coaching since leaving Tennessee amid NCAA violations in March 2011. He had most recently been a college basketball analyst for ESPN.
"I'm humbled and blessed to be back in the game that I love," said Pearl in a statement Tuesday. "I don't know how long it will take, but it's time to rebuild the Auburn basketball program, and bring it to a level of excellence so many of the other teams on campus enjoy."
Pearl spent six years at Tennessee and guided the Volunteers to the NCAA Tournament each season. He was 145-61 with the Vols and was a two-time SEC coach of the year.
More to follow.