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The players were told at training on Thursday night.
Tigers' co-coaches Shaun Daly and Anthony Miles elected to stand down after this season.
"As a teacher Max has that natural educational aspect and is very comfortable standing in front of a group," president Lindsay Rollings suggested.
"Max has a great footy brain and IQ, his ability to communicate and educate is amazing."
The 25-year-old spent time with Albury and the Murray Bushrangers, prior to being selected at No. 51 by Collingwood in the 2017 AFL Rookie Draft.
He played three senior games for the Pies over a five-year period and finished with another eight at Hawthorn in 2022-2023.
Lynch was forced to retire last August due to concussion issues.
He has returned to his first sporting love - soccer - and is playing with Boomers FC in Albury Wodonga Football Association's division one.
"It is Max's strong passion to progress and nurture the young talent within the club, as well as his desire to develop a strong connection with our sponsors, members and netballers," Rollings added.
"Along with his character and professionalism, Max is the perfect candidate to carry on the work Shaun and Anthony have been doing over the last few years, as well as those that came before them."
Albury is yet to finalise its coaching staff for next year, but is leaning towards a playing co-coach.
Rollings says the club is indebted to Daly and Miles.
"Anthony has been our playing co-coach for the past three years, first with Luke Daly, then with Shaun for the past two seasons," he said.
"Anthony has been incredible and will step down as coach to allow him more time with his young family, while Shaun is also stepping down to spend more time with his young family.
"We will properly recognise and celebrate the achievements of these two great men once our 2024 season has concluded and expect to see them around Tigerland in some capacity next year and beyond."
The Tigers are battling desperately to play finals and will resume after the split round with an away game against second-bottom Wodonga Raiders on Saturday.
