"I'm delighted to join the club this week and look forward to working with Slavisa once again, as well as with the rest of the coaching staff and players," he told the club's website.
"I have first-hand knowledge of the quality and ambition at the club since I was a player here, with tremendous work carried out by staff within the first team set up and across all academy age groups."
Fulham were promoted to the top division after a four-year absence, securing a 1-0 victory over Aston Villa in the Championship Playoff final in May.
"I'm looking forward to getting started right away in preparation for the Premier League campaign," the former England international said.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Keith Weir)
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