Collins will report to John Paxson, the executive vice president of basketball operations.
"Doug will be great in this capacity for our organization. The position of 'senior advisor' has proven to work well around the NBA in recent years, and I am confident the same will hold true with the Bulls," Chicago chairman Jerry Reinsdorf said. "The fact that our relationship goes back more than 30 years certainly helps, but he is especially qualified to assist our leadership in rebuilding the Bulls."
Collins, who coached the Bulls from 1986-89, has more than 40 years of experience in the NBA. He was selected by the Philadelphia 76ers with the first overall pick in the 1973 NBA draft and was a four-time All-Star before his career was cut short due to injury.
"People who know me know the respect that I have for Jerry, Michael (Jordan), and the Chicago Bulls organization. I am looking forward to getting started and helping everyone," the 66-year-old Collins said. "To be able to stay involved in the NBA and work with John, Gar (Foreman), Fred (Hoiberg) and their respective staffs, while not having to leave my family and continuing to live in one of the greatest cities in the world--the fit couldn't be any better for me at this point in my life."