The 58-year old has retired as coach of Udinese Calcio following a 13th-place finish in Serie A, and club sporting director Christian Giaretta revealed his new role in a press conference on Tuesday lunchtime.
Quoted on football-italia.net, Giaretta told reporters in a press conference: “The coach remained firm on the same position he held a month ago. From next season he will no longer be the coach of Udinese, but take on the role of technical supervisor.
“Guidolin will supervise the three teams of the Pozzo family. We wish him all the best.”
Following three top five finishes - including appearances in the UEFA Champions League play-off round - the Italian struggled to continue his impressive coaching spell during 2014, as Zebrette struggled to 13th in Serie A, whilst losing in the Europa League play-offs and the Coppa Italia semi-final.
Despite the confirmation of the Italian coach's new role, it is still unclear exactly what tasks Guidolin will undertake.
The Pozzo family own three clubs across Europe, with Udinese acting as a sister club to Watford of the English Championship, and Granada of Spain - who secured survival in La Liga with a final day victory over Valladolid. As Guidolin is set to become 'technical director' of all three clubs, it is to be believed that he will oversee transfer dealings throughout the triumvirate - with his wealth of coaching experience making him the ideal candidate to scout out targets for each respective manager.
Guidolin spoke of his pleasure in taking up the new role, which should allow him and his family to remain in Udine for the foreseeable future.
“This is a wonderful day for me, because I will no longer be a Coach, but I can remain here.
“I am pleased to stay here, give my contribution and face this new challenge. A new adventure begins and I am curious to see how it goes.
“It’s no coincidence I chose to wear a jacket at this conference, because there are going to be some changes. It’s a new phase of my life.
“I have so many games behind me. I don’t know how I will settle into this new role. I also feel a little sadness, but I want to underline this is entirely my choice. It is what’s best for me.
“Over the next few days I will be at the disposal of the club, then I’ll begin a lovely vacation and after that start working on this new job."
Despite not yet knowing who will be taking the head coach role at Stadio Fruili, Guidolin has been involved in the process of appointing his successor.
“I gave a few indications for my successor and, when he is chosen, I’ll be sure to support him, as I know the environment."
There is a belief that Czech-Italian Zdenek Zeman could be the Pozzo's main target to guide Udinese next season, with the family long term admirers of the former Roma manager. Despite rumours of a potential move to Vicarage Road for the Bohemian, remaining in Italy - and competing near the top end of Serie A - would likely appeal more to the 67-year old.
What Guidolin's appointment means for current Watford boss Beppe Sannino, who has yet to be confirmed as head coach for next season, must remain to be seen. Although working under a man with over 20 years of top division experience can only be a positive move the Hornets, as they search for a return to the Premier League.