Cooley will take over from Tasmania coach Adam Griffith, who has been handed the role for the Cricket World Cup.
Justin Langer turned to the duo after David Saker - another former England coach - resigned in February.
Cooley worked with the Australia bowlers in the recent one-day international series in India, which the tourists won 3-2.
The 53-year-old is credited with playing an important role in England’s victory over Australia in the classic 2005 Ashes series.
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