The former Switzerland international, 35, has been given the job title of Head of Licensed Football and Football Cooperations.
Schwegler played 59 times for TSG between 2014 and 2017.
He retired in 2020 and promptly joined the Bayern scouting department.
Alexander Rosen, Director of Professional Football at TSG, said the time was right to add a key executive to their sports department, explaining: "TSG Hoffenheim has had a very lean organisation compared to other Bundesliga clubs for years.
"The internal and external tasks to be managed have grown significantly and continuously during this time.
"Although we will not inflate our structure in the future either, we will adjust it to a moderate extent to meet the demands placed on a modern and ambitious professional club."
Schwegler said: "It gives me a good feeling to come into a familiar environment in which I've always felt comfortable. The club has developed extremely well in recent years. That's impressive to see. And it is even more impressive to be a part of it in the future."
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