Young, the team's longtime captain before he was traded to the Philadelphia Phillies in 2012, played 12 seasons for the Rangers and was a seven-time All-Star.
"Michael will be a significant asset to our baseball operations group in a variety of areas," Daniels said in a statement. "He has already been involved in our major league managerial search and player discussions this fall. I look forward to working with him as we prepare and plan for 2015."
Young left the Rangers as the franchise's all-time leader in games (1,823), hits (2,230), runs (1,085), doubles (415), triples (55) and total bases (3,286). He set a club record with seven seasons of batting at least .300.
After his career ended following the 2013 season with the Los Angeles Dodgers, Young was welcomed back and retired with Texas.