Sutherland, in his new position, will work with Australia's professional cyclists - coordinating, giving technical advice, and liaising between them and their key support, professional teams, management and support staff.
He will be based in Europe and responsible for assisting select National Team Road riders prepare for top international competitions, with special focus on the Olympic Games, World Championships and Commonwealth games.
"I am immensely proud," Sutherland said.
"My new role will allow me to give back to the sport and program that showed me so much support the past twenty years and I look forward to working with everyone as Australia continues to reach new heights in cycling."
The 38-year-old will prioritise Australian Cycling Team Individual Athlete Performance Support (IAPS) members with performance and development programs for both women's and men's events.
This appointment comes a month after he drew a close to his storied professional career on the UCI World Tour which lasted almost 20 years.
In that time, he rode for professional teams including Rabobank, UnitedHealthcare, Saxo-Bank, Movistar, UAE Team Emirates, and Israel Start-Up Nation.
"We believe Rory has a tremendous amount of knowledge and practical experience to bring to the team," said Australian Cycling Team Performance Director Simon Jones.
"Rory’s focus in the short term will be to focus on maximising our medal chances for Tokyo and secondly contributing to our longer-term plans to sustain road success at major championships in the future."