Herring, who never actually played for Otago, despite studying at the University of Otago and playing club rugby for Alhambra-Union, will work with head coach Cory Brown.
Otago Rugby Football Union general manager Richard Kinley said Herring had signed on for the season as assistant coach.
He would coach the forwards, although some outside expertise could be brought in to help in the scrum.
Herring played for the Highlanders and the Hurricanes and has also coached overseas.
He returned to Dunedin last year and was picked up by the Highlanders and is a resource coach with the franchise, concentrating on the breakdown.
He is also coaching the Alhambra-Union premier side.
Kinley said all the reports the union had received about Herring were extremely positive and he had proved incredibly valuable for the Highlanders.
Herring (36) was going to be concentrating on forward play in combination with Steve Cumberland but, with Cumberland heading overseas, Herring had been promoted to the assistant coaching role.
Herring played openside flanker at Super rugby for the Highlanders and Hurricanes before heading overseas but his career was ended prematurely at Leicester because of concussion issues.
