The former England international is heading back to Upton Park, where he spent three years as a player, to help coach the club's strikers.
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Having agreed an initial part-time deal to train the likes of Andy Carroll and new signing Mauro Zarate, the Premier League, FA Cup and Champions League winner expressed his excitement at the project.
With manager Sam Allardyce recently tasked by the club's board with improving the style of play next season, Sheringham is looking forward to helping out.
"I'm very excited. Sam phoned me a week or so ago and asked me if I fancied it. It was far too good to resist really," the 48-year-old told the club's official website.
"Being a West Ham boy and coming from the area, it fits nicely in all that I'm about, what with working alongside Sam and knowing a few of the players as well.
"I know the environment, I know everything about West Ham, so it was just too good an opportunity to turn down.
"I've had a couple of offers since I've been out of the game, which didn't feel quite right but, when this came along, it felt just right for me. I'm delighted to be coming back to the club.
"Having played as a striker for years, Sam wants me to add something along those lines. Anything I can do to be of help, I'm very willing.
"I obviously know Carroll, Cole and Kevin Nolan and I understand there'll be a few more forward players that I could be working with and alongside to help improve."