Wilkins joins Luiz Felipe Scolari's coaching team and told chelseafc.com: "Yes, I have gone full circle once again - but I am absolutely delighted. I have been out of football a long time. My last outing was with Dennis [Wise] a couple of years ago [at Millwall] and it is very pleasant to be back.
"Football now is almost like a closed shop so anyone who is out of the game is finding it nearly impossible to get back in, me included.
"So I was thrilled when Peter [Kenyon] phoned me up and said can I come and meet with him. He asked if I can help Felipe out which is an absolute pleasure. It didn't take too many minutes to make the decision."
On this season's Chelsea, Wilkins added: "They are playing with a freedom but have still been so solid at the back defensively, that has been so impressive. Plus there is the artistry of Deco who has been Zola-esque with some of his passing and creativity. That has been a highlight for me.
"Frank (Lampard) has been scoring goals again and it is just as important to re-sign players you've got in your club as bring in new players. Several top players have signed a new contract which is important for the club."