The former England manager makes his first venture into Asian football having built up a wealth of experience over more than 30 years of coaching.
The 64-year-old counts Manchester City, Fiorentina, Benfica, Roma, Lazio and IFK Gothenburg among the clubs he has managed, while at international level he has been in charge of Mexico, Ivory Coast as well as England.
Eriksson's last management position was in charge of npower Championship side Leicester, who he left last October following a mediocre start to the 2011/12 season.
Regarding the length of Eriksson's deal with BEC Tero, the Swede's agent Athole Still told Press Association Sport: "It's an open-ended contract, it could be very short term."
BEC Tero, who won the Thai Premier League in 2000 and 2001, are currently fourth in the league standings on 39 points, 22 behind the leaders, after failing to win any of their last five matches.