With Pako Ayestran's contract running out today Rafa Benitez has been able to add Pellegrino to his staff, although Sammy Lee will be Ayestran's replacement while Pellegrino replaces Alex Miller.
"His role will be first-team coach, and he'll also carry out specialist training sessions," Benitez told the club's official website.
"He can also work specifically with the defence, and also the reserves.
"Pellegrino has a winning mentality. He won the Intercontinental Cup before going to Spain with Barcelona and Valencia.
"He has a lot of passion. When I asked him to come he was very pleased, but first he wanted to find out if there was a school where his three children could play good football. He is a football man."