The former Brazil captain has assumed his duties as technical director for the Greens, while the Greek team’s Super League composition was announced on Monday.
“Panathinaikos welcomes Gilberto Silva back to the family,” the club said in a statement, announcing that the Brazilian had signed a three-year contract for an undisclosed fee.
The 39-year-old had been in discussions with his former team for several weeks, after club president Giannis Alafouzos identified him as the man to help the club regain its prestige in Europe.
Silva began his career with America Mineiro in 1997 and also won the Premier League title with Arsenal in 2004, playing for the English side from 2002-2008.
He was on the Arsenal team that lost the 2006 Champions League final 2-1 to Barcelona for whom he played as defensive midfielder and defender before signing with Panathinaikos.
In his 119 matches for the Greek outfit from 2008 to 2011 he scored six goals, while he has been capped 93 times for Brazil from 2001 to 2010, scoring three goals in total.
Silva finished his playing career with Brazilian clubs Gremio (2011-2012) and Atletico Mineiro (2012-2013).