GALLERY: Past weekend in pictures
"It is a great pleasure to announce that we are getting Peter back into rugby to help us with development projects of the sport," the sports minister said.
"We want him to develop the best model for grassroots rugby in the country. We are engaging him. The man has a wealth of knowledge that we need to tap into.
"Peter has done well for the country, including winning big events with the junior national teams," Mbalula said.
The minister has said he wants to see schools in the townships and villages playing competitive rugby.
"There is talent in abundance in the townships and villages in Gugulethu, Khayelitsha and the Eastern Cape. We want to see schools in Seshego, Bloemfontein, Mamelodi and other townships also playing rugby and producing great players for the Springboks."
De Villiers won a bronze medal with the South African Under-19 squad at the 1999 Rugby World Championships, and won gold in 2005 with the same team and silver the following year. In 2007, the former national coach won the Nations Cup with the Emerging Springboks.