GIANTS Chairman Tony Shepherd said he was delighted Sheedy had agreed to remain with the club.
"In many ways Kevin Sheedy is the father of the GIANTS. He's been here from the start and has helped build the GIANTS,” Shepherd said.
“I'm thrilled that he will be joining the Board as well as taking on a broader day to day role with the club as we enter the next important phase of our development.
"His vast knowledge and experience, his tremendous energy and his profile across Australia will ensure he will continue to be a great asset for the GIANTS."
Chief Executive David Matthews said Sheedy would work across the club in his new role.
"Kevin Sheedy is one of the greatest ever ambassadors of our game. He helped turn Essendon from a small suburban club in Melbourne into a national brand through iconic events like Anzac Day and Dreamtime at the 'G.
"As well as sitting on the board, Kevin will work with our corporate and community partners and continue to develop the club in Western Sydney and Canberra and right across Australia.
"He will also play a role with the PM CAPITAL GIANTS Academy to grow the game across our region and work across the club's commercial, fan development and marketing areas."
Sheedy said he was pleased to be staying in Sydney to continue to build the GIANTS and AFL.
"Helping to start the GIANTS four years ago has been one of the most exciting things I have done in my career and I have unfinished business,” he said.
"We have worked hard to put this club on the map in Western Sydney and Canberra with more than 12,000 members last year and average crowds in Sydney of 10,000. We are also receiving strong support from corporate Australia.
“Having now handed over the position of Head Coach to Leon Cameron, I want to build our crowds, membership and corporate partnerships.
“My vision is for the GIANTS to ultimately become one of the biggest sporting clubs in Australia."
Sheedy was appointed the inaugural Head Coach of the GIANTS in 2009 after coaching Essendon to four premierships over a record 27 years with the club.
He also played in three premierships for Richmond and is the only person to have played and coached more than 1000 VFL-AFL games. He was inducted into the Australian Football Hall of Fame in 2008
New Head Coach Leon Cameron said he was thrilled Sheedy was staying with the GIANTS.
"Sheeds has been one of the driving figures in establishing the GIANTS. I've thoroughly enjoyed my time working with him and look forward to him continuing to make a fantastic contribution across the club," Cameron said.