Miller's career at the Demons ended in 2010 after nine seasons with the club when Dean Bailey delisted him.
Richmond recruited him as a rookie and he played 24 games for the club between 2011-2012.
He will be a development coach with the Demons under new senior coach Paul Roos.
Miller was a lead-up forward for Melbourne and Richmond, kicking 120 goals in 157 matches.
He worked closely with Jack Watts when the youngster was first recruited to the club and has a lot of respect for his ability as a player.
Miller's delisting at the end of 2010 along with James McDonald and the loss of Cameron Bruce to Hawthorn was seen as a mistake as the club battled for leadership and cohesion under Mark Neeld.
Melbourne football manager Josh Mahoney said the club was pleased to welcome Miller back to the Demons to begin his coaching career.
"Brad displayed a number of characteristics required in a coach during his playing days and he will play an important part in the development of our players," Mahoney told melbournefc.com.au.
Miller played in four finals at Melbourne for one win.
The club has now appointed Brett Allison, Ben Mathews and Miller to its development team. Jade Rawlings is expected to remain as an assistant coach.
The senior assistant position is yet to be filled with Hawthorn assistant Adam Simpson among the front-runners to take that job once the finals are over.
