The South African, who was ousted just before the start of the Ashes series in England last year with two years left on his contract, said he was excited to be involved with the Perth-based team.
"Having had an interest in rugby over a long period of time, it's very exciting to be involved with a programme like this," he said.
"Perth is a dynamic, wonderful place to live with a growing appetite for rugby, and this opportunity will excite a lot of young players not only in Perth and Australia but around the world."
As well as nurturing home-grown talent, the "Future Force" programme will also attempt identify young players from abroad, and relocate them to Perth.
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"Our first priority is growing the game in Western Australia and the primary objective of the Future Force programme is to broaden our rugby base here in the state," said RugbyWA chief Mark Sinderberry.
Arthur was hired as Australia's cricket coach in 2011 but was sacked after the team lost a Test series in India 4-0 and followed it up with a poor showing at the Champions Trophy in England.
The two sides reached an undisclosed settlement.