"We talked about it quite a while ago," Saban said. "I told him we'd love to have him as a part of the organization."
As an analyst, Sarkisian can watch film of games and practice and provide input on the overall direction of the team, including the game plan. He is, however, not allowed to have a hands-on coaching role, interacting with players on the football field.
Tosh Lupoi was hired by Alabama as an analyst in 2014 and was promoted to linebackers coach in 2015.
Sarkisian, 42, reunites with former colleague and current Alabama offensive coordinator Lane Kiffin. The two coached offense together at USC under Pete Carroll.
Sarkisian, who was fired by USC in the middle of his second season, had previously reached an agreement to work as a television analyst during games for Fox Sports. He sued USC for wrongful termination, alleging discrimination because of his alcoholism and breach of his contract.
Saban said Sarkisian has worked to "get himself in a positive situation."
"We're going to continue to help him as an organization," Saban said. "We're glad to have him."
Prior to his tenure at USC, Sarkisian spent five seasons at Washington as head coach, compiling a 46-35 record.
No. 1-ranked Alabama (1-0) will host Western Kentucky (1-0) this Saturday.