The 44-year-old Law will replace Darren Lehmann, who has taken over as Australia coach. Law will also fill in as coach for Queensland Bulls.
The Board of Queensland Cricket endorsed the appointment earlier this week, and the State's first Sheffield Shield winning captain agreed to terms today, bringing his career full circle, a report on Brisbane Heat said today.
"I've very excited to again be involved with cricket in Queensland, which is where I got my start,'' he said. "Hopefully I can help the next generation to achieve all they can in the game and play it at the highest level possible."
"It's an honour to be back here. The last few years have been great watching the Bulls and Brisbane Heat enjoy their victories and I'm certainly looking forward to getting involved and helping them to move forward and taste further success," Law said.
Law said he was confident of a smooth transition when he takes over the reins later this month as head coach.
"We'll pull things together pretty quickly. Darren had plans in place already for the season and the coaches and players have been working very well in that framework during the off-season. I'll be looking to slot in with minimal disruption and get on with things."
"I'm fortunate in that in my capacity with the Centre of Excellence, I've been pretty familiar with the set-up in Queensland and where the playing group is at. It's going to be an enjoyable challenge."
He played one Test and 54 ODIs for Australia and 367 first-class matches in a career spanning 20 years, scoring 27,080 runs in his career.
Brisbane Heat squad will depart mid-way through next month to compete in the Champions League T20 tournament in India.