Walsh completes his assignment as a selector for the West Indies this month, a post he occupied for the last two years, and will take up his new position in September.
“I’m thrilled to be joining the Bangladesh Cricket Board (BCB) as their specialist bowling coach,” said the 53-year-old.
“Having watched Bangladesh cricket from afar over the years, they are a seriously talented bunch of players. Chandika Hathurusingha has done a wonderful job as coach so hopefully I can complement his skills and continue the positive progress.
“Obviously the West Indies is my home but the chance to go in a new direction in coaching at the international level with a talented group, was one I couldn’t let that opportunity pass.”
Walsh took 519 Test wickets and 227 in ODIs in a 17-year international career.
He was named one of the Wisden Cricketers of the year in 1987.
His move to Bangladesh, however, comes at a tense time for the Asian team.
Only last week, England finally agreed to go ahead with a tour in October despite fears it may be called off after an attack on a Dhaka cafe in July saw 20 — mostly foreign — hostages killed, with the Islamic State group claiming responsibility.