Wells, 39, who made over 250 Betfred Super League appearances after starting out his playing career with the Tigers, will combine his job at Sky Sports with his newly appointed role at his home-town club.
Wells will take charge of football matters, working alongside head coach Daryl Powell and providing a link with the board of directors.
Wells, who also played for London Broncos and Wakefield Trinity, said: “This is an improving, progressive club with the potential now to establish itself as one of the top clubs in Super League for years to come.
“To be asked to help contribute in setting that agenda is both flattering and tremendously exciting.
“It’s a really good time to be coming back to the Tigers; great coaching staff, a brilliant and growing fan base, and talented and dedicated players that really do deserve to be competing in and winning the biggest matches in our sport.
BREAKING NEWS | Following our most recent announcement, Castleford Tigers are delighted to welcome Jon Wells to the club in the new role of Director of Rugby.
— Castleford Tigers (@CTRLFC) March 12, 2018
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“My job is to help provide the environment in which they can do just that.”
Castleford have also announced the appointment of current commercial director Mark Grattan as managing director after confirming that Steve Gill will step down as chief executive at the end of May.
Chairman Ian Fulton said: “Jon’s knowledge of rugby league and passion for Castleford Tigers is invigorating and we are sure he’ll be a great fit in this new role.
“This will allow Daryl and Mark to concentrate on their day-to-day roles with Jon providing the perfect link between both departments.”
Gill, the man accredited with turning around the fortunes of Castleford off the field, announced his intention to quit in a letter to fans but will stay on as a director.
BREAKING NEWS | Steve Gill has issued a letter to fans to confirm his decision to stand down from his role as CEO with the club.
— Castleford Tigers (@CTRLFC) March 12, 2018
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“It has been a privilege, and an honour to serve the club who I have supported since boyhood,” he said.
“The club itself is possibly in the best position both financially and structurally I have ever known it and credit must go to everyone involved at the club for their hard work and commitment in achieving what seemed like the impossible in the early days.”
Gill grew up operating the scoreboard on match-days before eventually becoming head of youth and five years ago took over as chief executive at a time of financial crisis.
In addition to helping stabilise the Tigers off the field, Gill recruited head coach Powell, who guided the club to Wembley in 2014 and a maiden Grand Final in 2017.
Fulton said: “I would like to thank Steve for the last five years and also the previous years in the various roles that he has undertaken at the club.”
