The 56-year-old had been out of work since being sacked by Derby County for the second time in March.
However, McClaren is back in football after being approached by former Manchester United midfielder Jordi Cruyff, who is the head coach of Israeli giants Maccabi Tel Aviv.
"I have huge respect for such a well known club both in Israel and in Europe and I intend to help Jordi and the players achieve success for the fans this season," McClaren told the club's official website.
Owner Mitch Goldhar added: "Steve McClaren has a wealth of knowledge and is vastly experienced at the highest levels of European football. We are delighted to add a person of his calibre to our staff on a coaching consultant role."
McClaren has managed Middlesbrough, England, FC Twente, Wolfsburg, Nottingham Forest, Derby and Newcastle United during a well-travelled coaching career.