The 35-year-old - who has been working alongside the club's coaches throughout the season so far - will work primarily as a skills coach, dovetailing with fellow assistants Kenny Murray and Jonny Bell under Wilson's leadership.
He joins following two years as Head Coach of Ayr, first heading up their double-winning campaign in 2018/19 before leading the Ayrshire Bulls in the inaugural FOSROC Super6 competition in 2019/20.
Murchie made his name as a fearless full-back for the Warriors, making his club debut in a 22-9 victory over Munster in 2009.
The Carlisle-born man made 116 appearances in total in a Glasgow shirt, playing his part in some of the club's finest moments in the professional era.
He made 15 appearances during the 2014/15 Guinness PRO12 season that culminated in that unforgettable title win in Belfast, whilst he was also a member of the matchday 23 that secured a first-ever Champions Cup quarter-final with a 43-0 win away to Leicester Tigers in January 2017.
Murchie's consistent form for Glasgow saw him first called into the senior Scotland squad ahead of the 2012 autumn internationals, before making his debut in the dark blue jersey against South Africa on the 2013 summer tour.
The centurion initially cut his coaching teeth with Stade Nicois courtesy of Scottish Rugby's involvement with the French side, joining as a player/coach in the summer of 2017 before hanging up his boots in January 2018.
"It's really good to be back at Scotstoun," Murchie told glasgowwarriors.org
"Obviously a few things have changed since I was last here, but there are still a few familiar faces and it's a club that I know well.
"I learnt a tremendous amount during my time at Ayr - for me, it was vital that I had that experience. You learn on the job in a way, because it's very different to being a player. You make mistakes and you learn from those. I'm incredibly grateful to Ayr - they're a great club and I'm eternally thankful to them.
"There are a lot of quality players in Scottish rugby coming out of the academy system and the age-grade teams, and working with guys like Ollie [Smith] at the FOSROC Super6 level has given me first-hand experience of what these guys can do. They're starting to come through and take their opportunities, which can only be a good thing for everyone involved with the club. It's vital for the future of the club.
"The coaches have all been extremely welcoming, and I'm really grateful to Danny [Wilson] first for the invitation to come and work with the team and then for the chance to join full-time. They're a great group that are trying to push the club forward, and it's a great environment to be involved in."
"During his time with Ayrshire Bulls and Ayr RFC he has been an excellent Head Coach, built on his work ethic and attention to detail. He was well liked at the club and we wish him well.
"Glasgow Warriors' gain is Ayrshire Bulls loss; however, we would never stand in the way of a coach or player progressing into any professional set up from our FOSROC Super6 team."
Glasgow Warriors Head Coach Danny Wilson welcomed Murchie to the team, saying: "Pete is a passionate Warrior who has captained the side on many occasions, was part of the 2015 PRO12 winning side and played over 100 times for the club.
"As a young Scottish coach, he joined us a few months ago from Ayr on temporary basis and through his hard work and attention to detail has shown he has a good future in coaching.
"We're pleased that he is joining us permanently."