The 37-year-old made 85 England appearances and featured at three European championships and two World Cups during his playing career.
“Roy asking me to be a part of his staff and to work with the national team is not only an honour but a very special moment for me,” said Neville.
“I had absolutely no hesitation in accepting this role and I am relishing the opportunity to work alongside Roy and the team at the Euros and through to the next two tournaments”
Neville, who holds Uefa A and B coaching licences, won every domestic honour with Manchester United and the Champions League during a 19-year spell at the Old Trafford Outfit.
Neville, who will continue his work as a pundit for Sky Sports, will join coach Ray Lewington and goalkeeper coaches Ray Clemence and Dave Watson in Hodgson’s staff at Euro 2012.
“Gary has achieved so much in the game as a player with Manchester United and England,” said Hodgson.
“He has obtained Uefa coaching qualifications and will be tremendously respected by the players because of his vast experience as a player.
“At my first meeting with The FA, I explained that Gary was someone I wanted as part of my staff. I think it is very important we have a younger coach who knows the dressing room and is very experienced at international level.
“That he has represented England as a player at five major finals tournaments will make him an invaluable member of staff.”
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news