The Red Devils have confirmed Neville will join former team-mate Ryan Giggs on David Moyes' backroom team after he ended his playing career at the end of last season.
"When I retired from football, I knew that I wanted to continue in the game; it's something that I have been preparing for over the last few years," said Neville.
"So when David called to give me this opportunity, I couldn't resist.
"I gave my all when I played for Everton but it is no secret that this club is in my heart."
Neville returns to United after eight years at Everton.
He was part of Stuart Pearce's England Under-21 coaching team at this summer's European Championships, although he will hope for better fortunes after that side's poor display in Israel.
"I've really enjoyed working with David and his staff as a player and I think that, together with Ryan, we can make a real contribution to Manchester United," he said.
Like Giggs, Neville is presently taking his coaching badges and is viewed as a potential top flight manager of the future.
With six Premier League titles, three FA Cups and a Champions League trophy to show for his time at United, he is steeped in the history of the club.
And Moyes is looking forward to working with him.
"I have known and worked with Philip for eight years and in that time I have come to know his dedication, ability to lead and appetite for hard work," said Moyes.
"In addition, of course, he understands the Club very well and I think his addition to the coaching staff will be a valuable one."