McCaffrey, who will move to Dunedin from Canberra, will be a defence specialist coach under head coach Tom Donnelly.
The 34-year-old played 42 games for the Brumbies, and also played for the Force and the Waratahs, in Super Rugby.
McCaffrey, who is a consultant for EY and head coach of the ACT club side Gungahlin Eagles, previously played for Australian under-20s and later London Welsh and the Leicester Tigers.
The No8 also played in Japan and in the United States.
He has previously coached Major League Rugby side the Austin Gilgronis, where he was in charge of defence, collision and breakdowns.
Highlanders skills coach Kane Jury will also join McCaffrey as Otago’s new assistant coach.
Jury, who will be in charge of the backs and skills, is no stranger to the Otago scene, having previously served as head coach of the Otago Spirit in the Farah Palmer Cup, Otago men’s sevens head coach and the New Zealand secondary schools head coach.
McCaffrey and Jury will join Ryan Bambry, who remains with the side from last year as an assistant coach.
Otago union regional development coach Will Henry will also lend a hand with scrum support for the NPC side.
Otago’s NPC season kicks off with a big clash against the Southland Stags in Invercargill on August 10.
