Priestman takes over the New Zealand Wellington Phoenix who play in Australia's top league for women.
"It's a fantastic club with high ambitions, world-class facilities and a large supporter base", says the 39-year-old Briton.
The International Football Federation (Fifa) suspended Priestman from all football for a year after the spy scandal in the Olympic Games last year. In the middle of the tournament, it was revealed that Canada had spied on the premiere opponent New Zealand's training with the help of drones.
An independent investigation found that Priestman and assistant national team coach Jasmine Mander approved the use of drones by the national team's video analyst.
Priestman and Mander were sent home from the Olympic Games. Later, they were also fired.
Now the suspension has expired.
Rob Morrison, chairman of Wellington Phoenix, is aware that it is a controversial recruitment.
"We all know that she has been away for a period, but we understand the circumstances and are comfortable with this appointment", says Morrison.
In 2021, Priestman led Canada to Olympic Games gold after a final win against Sweden.
