The 63-year-old, who had served MRF pace foundation in Chennai for 25 years, will also act as a mentor to the budding pacers of Australia.
"He will work closely with full-time bowling coach Ali de Winter as Australia prepare to tackle India in a Test series next month and then the highly-anticipated Ashes series starting in July," Cricket Australia said.
In a Test career spanning 13 years, Lillee snapped a then-record 355 wickets in 70 Tests and is regarded as one the greatest fast bowlers of all time.