Sir Steve will join TMG to help beef up its coverage of the Olympics.
Murdoch MacLennan, the chief executive of TMG, said: "We are thrilled that Sir Steve has joined us.
"He will bring unparalleled wisdom and experience to our organisation and a unique insight to our readers.
"We have ambitious plans commercially and editorially for the London Olympics across all platforms and having Sir Steve Redgrave as part of the Telegraph team shows our ongoing commitment to deliver the best sports coverage."
Sir Steve, who retired after winning his fifth Olympic gold medal in Sydney 10 years ago, joins fellow champions Sebastian Coe, former rowing partner James Cracknell and and Baroness Tanni Grey-Thompson who also contribute to the Telegraph.