The 66-year-old was Neil Warnock's number two when he led County to the top flight in 1991.
He will work alongside manager Chris Kiwomya, who has been without an assistant since taking charge at Meadow Lane in February.
"I want to help recreate those Notts County days," Jones told BBC East Midlands Today.
"I should be retiring now, this will definitely be my last club, and I want it to be successful.
"I've come back to Notts County because I love Notts County - I hope that can create a lot of enthusiasm among everyone here."
Jones also played for County between 1969 and 1973.