Jardim had led Monaco to the French title in 2017.
The 41-year-old French World Cup victor, who had been working as an assistant to Belgium coach Roberto Martinez since 2016, returns to the club where he began his professional career.
However, in many respects, the Monaco role is the ideal starting point from which Henry can begin his career as a manager by building a side in his own image and demonstrating the true impact of his presence at a club which truly needs such a positive influence.
Henry will make his first steps into management, after a reported switch to Bordeaux over the summer never materialised.
Former Arsenal star Thierry Henry was announced as the new coach of Monaco as the Frenchman completed his final day of work as assistant to Belgium coach Roberto Martinez. He went on to enjoy a stellar club career with Arsenal where he won two FA Cups and two league titles and became the club's record goalscorer with 228 goals in all competitions.
"In the first place, I thank AS Monaco for giving me the opportunity to coach the team of this club which is so special to me".
Patrick Kwame Ampadu, a coach at Arsenal's academy and father of Chelsea and Wales player Ethan Ampadu, will join Henry's coaching staff, alongside Benfica Under-23 coach Joao Carlos Valado Tralhao.
The 41-year-old former French striker took up his new job just 2 days after Leonardo Jardim was sacked following a poor start to the season.
Henry scored 51 goals in 123 appearances for France, winning not only the 1998 World Cup but also Euro 2000. He can count on our trust and all our support to bring a new dynamic to the team and carry out its mission'.
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