The appointment of the former chairman of the Federal Reserve is believed to have been spearheaded by Deutsche Bank chief US economist Peter Hooper who was a Fed staffer during Mr Greenspan's tenure.
Dr Greenspan's new role will see him act as a figurehead at conferences and meetings as well as taking part in conference calls with clients, analysts and traders, according to a report in the Wall Street Journal.
However, in order to avoid conflicts with an already-established relationship with Pacific Investment Management, he will not be involved with the German bank's asset management division.
Deutsche Bank chief executive officer Josef Ackerman said: "Dr. Greenspan's position as one of the architects of the modern financial system gives him a unique perspective from which to help our clients make critical risk-management decisions."
News of Dr Greenspan's hire follows Deutsche Bank recently posting second quarter profits of $3.6 billion - a 31 per cent rise from the year ago period.