Former Hammers player and fan has been brought in to aid Sam Allardyce in getting the best out of strikers Carlton Cole and Andy Carroll, as well as new boy Mauro Zarate.
The 48 year old was a fans favourite in his time at Upton Park and was brought up not too far away from the ground.
Sheringham is hoping to help West Ham improve next season after trying his hand at coaching for unsuccessfully in the past.
“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.
“They’ve got a lot of respect for Sam, they speak very highly of him and to know that’s the case made me want to get involved.
“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.”