Piniella, who skippered the Reds to a 1990 World Series title, was hired as a senior advisor to baseball operations.
The Reds announced the move Friday.
"#Reds announce they have hired Lou Piniella to serve in a consulting capacity as a senior advisor. Will spend time w/ team at spring training," WCPO's John Fay tweeted.
Piniella, 72, hit .291, with 102 home runs and 766 RBI in 18 seasons as a player. Piniella was named 1969 Rookie of the Year and made the 1972 All-Star squad as a member of the Kansas City Royals. He won the 1977 and 1978 World Series as a member of the New York Yankees.
#Reds announce they have hired Lou Piniella to serve in a consulting capacity as a senior advisor. Will spend time w/ team at springtraining— John Fay (@johnfayman) February 5, 2016
In 23 years as a manager, Piniella compiled a 1,835-1,713 record. Piniella managed just three seasons at stops in Cincinnati, the New York Yankees and with the Tampa Bay Devil Rays. He also managed the Chicago Cubs for four years and the Seattle mariners for 10 seasons.
Piniella was named American League Manager of the Year in 1995 and 2001. He was named National League Manager of the Year in 2008.
Pitchers and catchers report to Reds spring training on Feb. 18 in Goodyear, Arizona. Full squad participation begins Feb. 23.