The 27-year-old Kiwi off-spinner played for the Royals in 2018 and 2019 before being released ahead the player auction which was held in Kolkata on December 19.
As part of his new role with the franchise, Sodhi will be working closely with bowling coach Sairaj Bahutule and Chief Operating Officer Jake Lush McCrum.
“It is a fascinating opportunity for me, to be involved in the coaching staff at such a young age, while also supporting and learning about the operations of the business,” said Sodhi, who has picked up 47 wickets in 40 T20 Internationals for New Zealand.
Ish Sodhi has also represented New Zealand in 17 Tests and 31 ODIs.
"Having played for two seasons for the Royals, I have formed a great level of understanding with all the people involved with the franchise, and they have always been very supportive of me. Therefore, I did not have to think twice when this opportunity was offered to me by the Royals' management. I love this franchise and want to help us win the IPL this year," he said.
All-rounder Shreyas Gopal, who has played with Sodhi for the Royals, also welcomed the appointment and said that the New Zealand leg-spinner and Sairaj will be a great combination for him and the other spinners.