Woodgate will specialise primarily on talent in Spain and Portugal, although he will not be confined solely to those countries.
The centre-back was released by hometown club Middlesbrough at the start of the summer following their promotion to the Premier League and, at the age of 36, is taking the first steps into his post-playing career.
He has been to Liverpool’s Melwood training ground and met club officials to discuss his brief.
Woodgate knows Michael Edwards, Liverpool’s Technical Director, from his time at Tottenham as a player.
Woodgate had a spell in Spain with Real Madrid following a £13.