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The former England manager told Sky News last month "he always wished to be the manager of Liverpool".
Following a campaign from the club's fans to grant Eriksson his wish, Liverpool said: "We are delighted to confirm Sven-Goran Eriksson will be part of the LFC Legends management team for the game against Ajax Legends at Anfield, on 23 March.
"The former England boss will join a dugout of LFC greats, including Ian Rush, John Barnes and John Aldridge, for the annual LFC Foundation charity match.
"All connected with the club and LFC Foundation look forward to warmly welcoming LFC fan Sven and his family to Anfield - and seeing him in the dugout on the day - for a fantastic fundraising occasion."
Asked by Sky News presenter Niall Paterson which role in football he wished he'd taken, the 76-year-old said: "My father is still a Liverpool supporter and I am a Liverpool supporter too, always have been," he said.
"So I always wished to be the manager of Liverpool and that will not happen, but I'm still a Liverpool fan."
As for how he wants to spend the time he has left, he said: "Travelling, looking at a lot of football still.
"I hope maybe to go to England and see England versus Brazil in March. Great game, a warm-up for the World Cup, because that could also be the final [of World Cup 2026]."
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He said he looks back at his five-year stint with England between 2001 and 2006 with some regret, believing the team could have done more than three consecutive quarter-final finishes in 2002, 2004 and 2006.
He had the so-called "golden generation" of footballers in the England team including David Beckham, Steven Gerrard, Wayne Rooney and Frank Lampard, but they went out of the last two of those tournaments on penalties.
After starting out in management in Sweden in 1977, his career took him to Portugal and Italy, before he left Rome giants Lazio for England in 2001.
After leaving the England job in 2006, he coached at a host of club sides and international teams including Manchester City, Leicester City, Mexico and the Philippines.