The Kop legend will assume a senior role at the Academy and also act as a club ambassador working with the commercial side of the business around the world.
"Kenny's a special person," McParland told liverpoolfc.tv. "So just to have him around the place makes a real difference.
"If you think of what he has achieved in the game as a player and a manager then it really does give you goosebumps. The experience he brings is something that we can all tap into. Not just the youngsters but also myself and the coaching staff here.
"Football is at the very core of Kenny's being and the knowledge he has is going to be such an inspiration to all of us.
"I saw an interview with Kenny recently in which he said he was relishing working at the Academy. Well I think I can safely speak for everyone here when I say that we are all relishing working with him."