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The position of coach development adviser is newly created for the Kiwi, and does not involve working with the senior team.
As Ulster statement said Schmidt would "support the ongoing development of coaches across the province, helping to strengthen a clear and connected coaching pathway" throughout the organisation.
The 60-year-old left his role with the Wallabies earlier this month after a win over Italy in the Nations Championship ended a run of six straight defeats.
"Ulster has a proud rugby tradition and further developing the coaching pathway in the region is something that we believe can add value," said Schmidt.
Schmidt is one of Ireland's most successful rugby coaches having led the national side between 2013 and 2019 - winning back-to-back Six Nations titles in his first two campaigns before a Grand Slam in 2018.
He was also at the helm for Ireland's first win over New Zealand and maiden triumph over the Springboks on South African soil - both in 2016.
Prior to that, Schmidt had worked as an assistant at Clermont and served as Leinster's head coach for three years, winning a pair of Heineken Cups with the latter.
Schmidt has recently been linked with a return to the RDS, with head coach Leo Cullen set to leave at the end of the 2026-27 season after more than a decade in charge.
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"Last season we introduced a dedicated focus on player development within our performance pathway. It is equally important that we prioritise the long-term development of our coaches," he said.
"Strengthening our coaching pathway is a key part of our long-term strategy.
"Joe's involvement will help us support coaches at every stage of their journey, from emerging coaches in schools and clubs through to those operating across our pathway programmes. His experience will help create a more connected and consistent coaching environment across the province."
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