WVU coach Dana Holgorsen announced Sunday that Bailey will join the coaching staff. He'll also enroll as a full-time student to complete his bachelor's degree in multidisciplinary studies.
Bailey was shot twice in the head while sitting in a car with his family in November back home in Miami. Last month, the Rams placed him on the reserve non-football injury list so he can stay around the team while not counting against its 90-man roster.
The 25-year-old receiver has not been cleared to return to playing football despite returning to workouts and getting multiple opinions. He was, however, present for Rams OTAs in June, helping out with the receivers and on special teams.
In a statement, Bailey said that while his playing career isn't over, the opportunity to return to WVU gives him more time to heal.
Bailey played at West Virginia from 2010-12, compiling 3,218 receiving yards and 41 touchdowns.
In a statement released by WVU, Rams coach Jeff Fisher said the Rams "couldn't be happier" for Bailey and "wish him and his family the best as they step into the next chapter of their lives."
Information from ESPN's Nick Wagoner and The Associated Press was used in this report.