As part of a backroom shake-up at the Dons, Waddock will take up the coaching role and will work alongside Dons boss Karl Robinson on the day-to-day business at the Football Club.
Former Wycombe Wanderers boss Waddock starts with immediate effect and has linked up with the Dons this morning to meet the players and staff following their return for pre-season.
The 51-year-old was named Conference Manager of the Year in 2007/08 when he won promotion to the Football League with Aldershot Town, in that time the Shots totalled a record 101 points and went 18-games without defeat.
Waddock, who was also promoted to League 1 with Wycombe during a three-year spell at Adams Park, brings a wealth of coaching and playing experience to Robinson’s backroom staff.
More recently, Waddock has been working for the Premier League by monitoring a number of clubs and their progress following the introduction of the Elite Player Performance Plan (EPPP) 12 months ago. Waddock has departed the role to take on the full-time duties at MK Dons.
Speaking to mkdons.com Robinson said: “The big thing for me is that Gary has been a manager himself in recent times and he has a great ability to encourage, develop and work with young players.
“I believe we have one of the best policies in the country at bringing players through the youth system and the success has come through coaching. Gary is a great coach who will work with the first team and younger players to help develop us all and help move the Football Club.
“He is a very calm character and a good coach who I am looking forward to working alongside.”
Waddock said: “It is a fantastic opportunity; I have known Karl and his backroom staff for a little while. This Club has been very close, in the play-offs and just outside the play-offs, for the last few years and I am pleased to be part of the team now.
“I am eager to work with Karl, he is a very, very good manager and we have some quality players here as well so if I can add a little bit to that I’d be very happy.
“Our football philosophy is very similar because we have similar ideas on how the game should be played and that is important.
“My coaching background is based around developing young players, when I was at QPR I worked with the youth team players there and I was able to bring one or two through and that is something I have strived to do at other clubs I have been at.”