Marshall (46), a former Nuggets player, had two three-year stints as head coach in 1998-2000 and 2002-04.
A passionate and well-respected member of the basketball community, he was a key member of a Save the Nuggets group formed in December 2008 in a desperate bid to save the franchise when the decision was made not to enter a team in the 2009 National Basketball League for financial reasons.
The group's efforts were unsuccessful that year but Todd and the likes of Gavin Briggs got themselves elected to the board and helped get the team back up and running in 2010.
Now Marshall's challenge will be to continue the good work done by the association in growing and developing the game at the grassroots level.
"It will be a bit different," he said.
"Basketball has been my hobby and now it is a fulltime commitment.
"Even though I've been involved in basketball I haven't been actively involved at a representative and age-group level for a few years. But it has been a very successful programme ... so I just want to have a look and see how everything is running.
"There are some very committed and talented youth in Otago and you've also got some talented young coaches and parents which put a lot of time into it as well.
That gives us something to work from and it is a great position to be in."
Marshall, who is a former police dog handler, has been appointed on a short-term contract. The position is funded through the community and will be reviewed at the end of the year, but Marshall is hopeful it will become a permanent role in the future.
He will step down from his role on the board of Basketball Otago at the annual meeting planned for mid-August.
Basketball Otago general manager Markham Brown said Marshall would be "a great addition".
"He is very experienced at the elite level and has a lot to offer," he said.
Marshall replaces Casey Lockwood, who wants to pursue playing opportunities in the Australian Basketball League and can no longer commit to the role.
United States import Scott O'Gallagher had also expressed interest in the position but the job had already been filled, Brown said.
Marshall will oversee the age-group representative and youth development programmes and is expected to look for ways to promote and develop the game in the regions.
• Tall Black forward Craig Bradshaw was named Otago Nuggets most valuable player at a function at the Southern Sports Bar and Grill last night.
Bradshaw had a tremendous season for the franchise, leading the scoring with an average of 18.5 points a game. He was also the team's second-leading rebounder with an average of 8.5 boards and filled out the rest of the statistics sheet with an average of 2.4 assists and a total of 14 steals and eight blocks.
Swingman Mark Morrison won the award for the defensive player of the year with forward Matt Trueman named player's player of the year.
Guard James Ross received the player of the year award which is presented to the player who demonstrated the most commitment to the team.
