Woodson was one of the most accomplished defensive backs ever to play the game and was named to the NFL's 75th Anniversary Team. He played the final two of his 17 seasons with the Raiders, helping the team win the 2002 AFC championship.
"It's an honor to be back with the Raiders and be able to talk to Raider players about true football," Woodson said. "I'm looking forward to working with the organization and the challenges of the 2011 season."
Woodson had recently served as a television analyst at the NFL Network and Big Ten Network but decided to get into coaching.
Woodson spent the bulk of his playing career with Pittsburgh, starring for 10 seasons on the Steelers. He was named AP Defensive Player of the Year for Pittsburgh in 1993 and helped the Steelers reach the Super Bowl following the 1995 season.
He also spent one season with the San Francisco 49ers and four with Baltimore, winning the Super Bowl with the Ravens following the 2000 season.
Woodson was named to 11 Pro Bowls, the 1990s all-decade team and was named a first-team All-Pro six times as either a cornerback, safety or kick returner.
"I'm excited that we have a Hall of Fame player who is coming back to the organization," coach Hue Jackson said. "I was extremely impressed during the interview process with his communication skills and I'm looking forward to Rod imparting his wealth of knowledge to our players."
Woodson's 71 career interceptions rank third all-time in NFL history. He is the career leader in interception returns for touchdowns (12), and interception return yardage (1,483).
Woodson will work in the secondary with Kevin Ross, who is coaching the safeties. The Raiders still have not announced who their defensive coordinator will be next season. Chuck Bresnahan, who was defensive coordinator when Woodson played in Oakland, is on staff as a defensive assistant and is a likely candidate.