Wilshere announced his retirement from professional football last week at the age of 30 following a career that was punctuated with fitness issues.
Once one of English football's most prodigious talents, Wilshere never truly fulfilled his undoubted potential.
Wilshere came through the Arsenal youth ranks to make 197 appearances for the Gunners, winning two FA Cups.
He also turned out for Bolton Wanderers during his formative years, as well as Bournemouth, West Ham United and Danish side AGF Aarhus.
Wilshere is now back where it all started as he looks to guide the next batch of Arsenal's future stars.
"It's a huge honour to have this role," he said. "It's no secret that I love this club. I love what we stand for and a big part of my life was spent in this academy, some of the best days of my life.
"This is a big opportunity for me, and I'm ready. I'm hungry and can't wait to help these young players thrive and be the best they can be on and off the pitch.
"It's a special feeling to be part of the Arsenal family. It never left me, and even though I moved on for a few years, my heart was always still at Arsenal.
"I can't wait to get started and help these young players thrive with a great team around me."
Academy manager Pet Mertesacker said of Wilshere's appointment: "This is great news for everyone involved in our academy. We have made a number of really positive changes in the last few weeks and I believe that we have the best possible people here to build on the progress that we've made in recent years.
"Everyone knows how passionate Jack is about Arsenal. He understands what we want to achieve here and he really impressed us last year. He knows exactly what it takes to progress through the academy into first team football."
Wilshere won 34 caps for England and played at the 2014 FIFA World Cup and EURO 2016.