The 41-year-old French World Cup winner, who had been working as an assistant coach for the Belgian national team, signed a contract through until June 2021.
The former striker will be joined by Joao Carlos Valado Tralhao, under-23 coach at Benfica, and Patrick Kwame Ampadu, coach at the Arsenal Academy.
Henry knows Monaco well having graduated through the youth system and played for the Principality club between 1993-99.
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