And the man who was sacked in November is set for a John Smith’s Stadium return with Championship rivals Derby County next season.
Ex-Charlton Athletic chief Powell will be assistant to new Derby manager Nigel Pearson.
The 46-year-old ex-England left-back is a popular former Rams player who worked with Pearson at Leicester City.
Derby chairman Mel Morris said: “It is great to have Chris Powell back at the football club.
“Chris is a top-quality coach and gave us excellent service as a player.
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“He will join Kevin Phillips and Pascal Zuberbuhler in the first-team coaching set-up.”
Pearson, 52, has spent a season out of the game having been sacked by Leicester last summer.
Derby axed Paul Clement in February, having only appointed him last summer.
Darren Wassall stepped up from academy director to interim head coach.
But Derby lost out to Hull City in the play-off semi-finals.
Pearson said: “I am honoured to be named as the manager of one of the biggest clubs in the country, a club in excellent shape and one with strong ambitions.
“It is firmly focused on achieving Premier League football.
“I will give absolutely everything I have to this role and do all I can to bring exciting, entertaining and winning football which our supporters can be proud of.”