Warne, whom the Royals' fans hold dear, led the team to a fairytale IPL triumph in the inaugural edition of the cash-rich cricket league.
Return of the Royal
The first Royal is back as mentor
The 48-year old, who has 57 wickets in 55 IPL games, posted a video on his social media to make the announcement.
The former Australian leg-spinner said he is very excited to join Rajasthan as a mentor for this year's IPL.
Warne returns to the team after a period of seven years and will replace Rahul Dravid at the helm of affairs.
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Warne has an exciting lot to work with
"I am overwhelmed by the love and affection showered on me by the franchise and fans of Rajasthan Royals. We have a strong, young and energetic bunch of boys, and I am looking forward to work with them." Warne said.
Shane Warne reunites with Rajasthan Royals
Warne, who was Rajasthan Royals' first player, captained the side for 3 years from 2008 to 2011.
The 48-year-old is still the Royals' third-highest wicket-taker of all time.
Warne has worked with the likes of Ajinkya Rahane in the past and will now work with compatriot Steven Smith, who has been appointed as the captain of the franchise.