The 43-year-old has been out of work for the last nine months since he was sacked by National League side Barnet in September last year.
Kewell is well known for his successful playing career, playing for the likes of Leeds United, Liverpool and Galatasaray, while he also represented the Australian national team on 58 occasions.
The Sydney-born forward, who won the Champions League with Liverpool in 2005, has previously had four managerial roles in England, starting out with Crawley Town in 2017, before taking the reins at Notts County, Oldham Athletic and Barnet.
Speaking to the club's official website on his appointment at Celtic, Kewell said: "It is a massive honour to join Celtic and team up with Ange. He and his backroom team and the players have done brilliantly in their first year together, producing winning football in a great style. To turn things around and become champions so quickly is a huge testament to Ange and everyone else at the club.
"The manager is synonymous with attacking, exciting football, something he delivered on last season and something I know Celtic fans have loved right across the generations. We will be aiming to give our fans more of the same going forward and I look forward to playing my part in bringing this to our supporters.
"Celtic is a club the whole world knows and admires and it will be a privilege to be part of such a fantastic footballing institution. I am well aware of the demands and responsibility which comes with the territory at such a massive club and this is something which excites me and I am sure everyone else lucky enough to be associated with Celtic.
"I can't wait to join up with Ange, the coaching staff and players for the challenges ahead and hope to play my part in our future success. I'm ready to work and am really looking forward to getting started."
Celtic have revealed that the appointment of Kewell will see former Hoops captain Stephen McManus move from the first team to work with the club's B team.