Becker, 49, will remain in London and work on an honorary basis until the end of the Tokyo 2020 Olympic Games, also assisting with Germany's Davis Cup team.
The role will be unpaid, with travel expenses covered by the Deutscher Tennisbund (DTB).
Becker's most recent coaching spell was with Novak Djokovic between 2013 and 2016, during which the Serb won six of his 12 grand slam titles.
"Tennis is a matter of the heart for me; it is what I can do best," Becker told reporters in Frankfurt Wednesday.
"I don't need to talk about my achievements as a player and I am proud of my success as a coach.
"I love this game and I love this country."
Becker, winner of 49 singles titles, guided West Germany to successive Davis Cup victories as a player in 1988 and 1989.
He also acted as Germany's Davis Cup coach between 1997 to 1999, but endured a difficult relationship with the federation (DTB).
No German man has won a grand slam singles title since Becker emerged victorious in the 1996 Australian Open, but the former world No. 1 stressed he had "strong confidence" the latest arrangement could be fruitful.
"This is the new DTB," said Becker, who also works as a tennis commentator for a number of TV outlets. "I had my problems with the old DTB but that is in the past now."
Becker and Djokovic "jointly decided" to end their cooperation in December, with Becker taking to Twitter to say: "We had the time of our life."
Now, with promising German 20-year-old Alexander Zverev occupying sixth spot in the ATP world rankings, Becker will hope to improve the fortunes of his home country.
Germany's next Davis Cup match comes in the World Group playoff against Portugal in September.
Barbara Rittner, captain of the German Fed Cup team since 2005, was named head of women's tennis.