"I’m delighted Richard has agreed to sign," City boss Peter Reid told the clubs official website.
"He’s a great character to have around the dressing room and he still has a desire to play football. I have no doubt that he can do a job at this level and his experience will be vital.
"By taking over the reserves it gives him a chance to see whether coaching is a route he would like to go down once his playing days are over.
"I know all the players have a tremendous amount of respect for Richard and I think he will have a big effect on the youngsters who will be playing in the reserves," he added.