Busquets will serve as assistant coach for Barcelona's reserve team, while also completing his coaching education.
"His experience, knowledge and understanding of the game will contribute to the growth and development of the young players in Barça's reserve team," the club writes.
The former midfielder, who came through Barcelona's academy, spent 15 seasons with the club's first team, winning 32 titles. He was part of the Spanish national team that won the 2010 World Cup and Euro 2012.
Busquets ended his career last year after two and a half seasons with MLS team Inter Miami.
