As per the company's announcement, Klopp will not be involved in the day-to-day operations of the clubs, but will instead focus on a more strategic and overarching role.
Klopp himself said: "I see my role primarily as a mentor for the coaches and management of the Red Bull clubs.
"After nearly 25 years on the sidelines, I couldn't be more excited to be involved in a project like this."
The 57-year-old will start his tenure on January 1, 2025.
Sky Germany reports Klopp's contract includes an exit clause which allows him to take over as manager of the German national side should he be approached.
Klopp spends much of his time at his home on the Spanish island of Majorca and retains a sponsorship role with German sportswear maker Adidas.
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Hans-Joachim Watzke, the managing director of Klopp's former club Borussia Dortmund, told AFP's German sports subsidiary on Wednesday he had discussed the Red Bull role with him.
"As always, I wish Jurgen good luck in his new job," Watzke said.
"It was no surprise to me because we talked about it personally," he added.
Earlier this month, Klopp was presented with Germany's Federal Cross of Merit.
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In addition to their extensive football interests, Red Bull are the principal sponsor of the reigning Formula One champion team of Max Verstappen.
(This story has not been edited by staff and is auto-generated from a syndicated feed.)