During his playing career, the defensive midfielder represented a host of English Premier League clubs and has also managed Manchester City, Sunderland and the England under-21 team.
"It's a great opportunity to coach in the Indian Super League. I enjoyed working overseas with Thailand and am very much looking forward to this new challenge," the 58-year-old former Thai boss said in a statement.
Former Italy striker Alessandro Del Piero, ex France and Juventus striker David Trezeguet, his compatriot Robert Pires, Spaniards Joan Capdevila and Luis Garcia and former Newcastle United striker Michael Chopra have all confirmed their participation in the Oct. 12-Dec. 20 league.
Mumbai FC have signed former Germany centre back Manuel Friedrich as a marquee player and also named Steve Darby, who worked with Reid at the Thai national team, as assistant coach.
Reid joins compatriot and former international goalkeeper David James, Brazilian great Zico and New Zealand's 2010 World Cup boss Ricki Herbert as other high profile managers in the eight-team league.
Local media reports have also linked the Chennai franchise with a bold move for Brazilian former World Player of the Year Ronaldinho.
(Editing by Patrick Johnston)
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