Under the agreement, McGrath, who took 563 wickets in tests and 381 in one-dayers, will train India's current and upcoming fast bowlers at the MRF Pace Foundation during his visits to the country.
"It has been a wonderful couple of years for me at the MRF Pace Foundation," said McGrath, who replaced countryman and fast bowling great Dennis Lillee as the foundation's director in 2012.
"I now eagerly look forward to working with India's best at the foundation," said the 44-year-old former player known for his control and accuracy with the ball.
"Our facilities compare favourably with the best in the world and I am eagerly looking forward to this challenge."
India's fast bowling options over the years have been quite limited and is one of the many reasons behind their dismal performance in away test matches in recent years.
They were recently thrashed 3-1 in England and will travel to Australia in November to play four tests and a 50-over tri-series, also involving England.
(Reporting by Sudipto Ganguly; editing by Amlan Chakraborty)
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