After a playing career that took him to both Adelaide and the Western Bulldogs, Hudson played one year with the Lions in 2012 before spending the past two seasons on Collingwood's rookie list.
Hudson rounds out the Lions' coaching appointments for next season and will work alongside former teammate Mitch Hahn (defensive skills and backs coach).
His appointment comes one week after Danny Daly was named as the club's stoppage strategy coach.
Hudson, 35, played 18 of his 168 career games with the Lions and spent much of 2014 mentoring Jarrod Witts and Brodie Grundy.
The Lions will also look to retain the services of champion forward Jonathan Brown in a part-time role within the coaching group.
Coach Justin Leppitsch said Hudson would prove a valuable addition to the coaching panel:
"Ben has done a fantastic job working with Collingwood’s young ruckmen and has a wealth of experience as both a player and a mentor," Leppitsch said.