Karagumruk are looking to kick on after a surprise eighth place finish in the Turkish top flight last season.
Pirlo has been out of work since leaving Juventus in the summer of 2021.
Pirlo lasted just one season in his first senior coaching role at the Allianz Stadium before being dismissed.
Pirlo took over the club at the start of the 2020/2021 season on a two-year deal after Maurizio Sarri was sacked, however the former Italy international endured a difficult first season in management as Juventus lost their Serie A title to Inter Milan and only secured Champions League qualification on the final day of the season.
The 43-year-old however won the Coppa Italia and Italian Super Cup before leaving the Old Lady.
A statement from Karagumruk confirming Pirlo's appointment read: “The world-famous footballer recently coached Juventus, one of the most important clubs in Europe.
"Having also had Champions League experience with Juventus, Pirlo signed the contract that made him a member of Karagumruk for one year, starting on 1 July.”
“Pirlo's press conference will be held on Tuesday, June 14, and the place and time will be announced later by our club. We welcome our coach and wish him success.”
Pirlo won the FIFA World Cup as a player with Italy in 2006 as well as numerous Serie A titles with Juventus and AC Milan.
