The 36-year-old, born in Gosport and qualified for Scotland through his father, made the announcement through Bournemouth's official channels on Monday — just weeks before his Reading contract was due to expire. He had spent last season at Reading in League One, scoring one goal and contributing six assists in 28 appearances.
Bournemouth sporting director Tiago Pinto explained why Ritchie was the natural choice for a role that had previously been held by Simon Francis — a close friend of Ritchie's from their time together at the club.
"Matt's close connection with Bournemouth combined with his experience on the pitch makes him a fantastic addition to our staff, and I personally very much look forward to working with him."
Ritchie joined Bournemouth from Swindon Town in January 2013 for approximately £500,000 at a time when the club were in the lower reaches of the Football League. He spent three years at Dean Court, playing a significant role in their rise to the Premier League under Eddie Howe before leaving for Newcastle United in a £12m deal in the summer of 2016.
His responsibilities in the new role will cover recruitment, player pathways, squad planning and overall football strategy. Ritchie has been completing his coaching A Licence through Bournemouth's academy — a connection that helped maintain his relationship with the club's football operations ahead of the appointment.
He is the second former Bournemouth player to take a significant off-pitch role at the club in recent years, following the precedent set by Francis, whose 15-year association with the club — first as a player, then as technical director — came to an end last month.