KEVIN Sheedy will start his new role at Essendon next week after the club confirmed his return on Tuesday in a senior management position.

The four-time Bombers premiership coach has been appointed to the newly created role of general manager of commercial development and innovation.

Sheedy will leave his post at Greater Western Sydney, where he has been based since being named the club's inaugural senior coach in 2009, to fill the job in Melbourne.

"The Essendon Football Club holds a special place for me and my family, and I'm looking forward to be coming back to the club and working with so many driven and dedicated people," Sheedy said.

"It was a difficult decision to leave GWS, but I am proud of the work I have done there and what we were able to achieve in a relatively short period of time and in a particularly tough market.

"The time to move on and spend more time with my family in Melbourne was important to me, as was the opportunity to go back to an organisation where I spent 27 years."

The Giants supported Sheedy's move on Tuesday, with a press conference in front of the club's full playing list.

The club's annual best and fairest award is named after Sheedy and they awarded him the Giants' first life membership as he farewelled the club.

Essendon chief executive Xavier Campbell said the role needed to be meaningful to lure Sheedy back to the Bombers, the club he departed at the end of the 2007 season.

The 67-year-old will work with the Bombers' commercial, community and marketing departments, and although he won't have any formal role within the football area, he will help educate all Essendon employees of the club's history.

Sheedy said discussions with Campbell and Essendon chairman Paul Little had left him with confidence for the new role.

"Discussions with Paul and Xavier gave me a good feel for where the club is heading, they have a vision and I'm looking forward to playing a part in shaping the club’s bright future and making our fans proud," he said.

Sheedy coached Essendon in 634 games, including seven Grand Finals, before two years and 44 games as Giants coach.