McMillan also named Bob Ociepka and former Blazer Buck Williams as assistants.
Bickerstaff's coaching career started in 1973 and has included stints as a head coach in Seattle, Denver, Washington and Charlotte. He has spent the past two seasons as an assistant with the Chicago Bulls.
He has also served as general manager of the Nuggets and the Bobcats.
Ociepka has also been an assistant with the Bulls for the past two seasons. He has nearly 20 years' experience as an assistant in the league.
Williams, a three-time All-Star, played for the Blazers from 1989-96 during an NBA career that spanned 17 seasons.