"One of the greatest fast bowlers of all time, Waqar Younis will be the bowling coach for SunRisers Hyderabad!" the team said in a tweet.
Younis was bowling coach of Pakistan and national coach till mid-2011.
Sunrisers, who took over the Hyderabad franchise from Deccan, have Tom Moody as their head coach and Kris Srikkanth as their team mentor.
The 41-year-old picked 373 wickets in 87 Tests. His ODIs tally read 416 in 262 matches.