At the Hurricanes, he is expected to complement Wade Townsend and Adam Griffith in a coaching staff of three.
"I’m so excited to be joining up with the Hurricanes and working alongside Adam Griffith," Bell said in a statement released by the Hurricanes on Tuesday.
"The Big Bash is without doubt one of the best competitions in world cricket, and having previously taken part as a player, I can’t wait to get stuck in as a coach."
"I already know a great deal about the team having either played with them before or having admired them from afar, and I’m certain we have got some serious talent in there.
"I was fortunate enough to win the BBL as a player and I would love nothing more than to be a small cog in a winning team but this time as a coach."
An 11-year international career for England will enable Bell to impart his extensive experience with the Hurricanes side. He played 118 Tests and 161 ODIs, amassing 13,331 runs in international cricket.
In 2016, Bell captained Warwickshire in their T20 guise the Birmingham Bears during 'The Blast' in England. Current Hurricanes captain Matthew Wade also played in that side, while two of the Hurricanes' three international recruits are also from England in Jordan Thompson and Harry Brook.
Bell is also well-accustomed to touring down-under, having already played for the Perth Scorchers in previous editions of the BBL, where he scored 231 runs in 10 matches.
The 39-year-old played a leading role in England's domination of Australia away from home in the 2010/11 Ashes, scoring 329 runs at an average of 65.80.