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Coleman underwent extensive physiotherapy but doctors advised him he could not continue as a player and so, he has taken up a coaching post with the club.
"I have a great affection for the club and the fans and I have always wanted to be able to show my appreciation and gratitude for the support they have shown me.
"The coaching role is extensive and challenging and I look forward to working with Jean Tigana, his team and of course the players to ensure we can maintain and build on the success that the club has achieved so far."
Fulham boss Tigana said: "It was too difficult for Chris to play again - and I've explained to him that my door is open if he wants to work with me.
"It really is fantastic that I have been given the opportunity to stay at Fulham Football Club in this new role," Coleman said in a statement.
"He can start with the Under-15s and Under-17s and with me. He's a good man and has the possibility to manage at a high level, so it's a good opportunity for him and for Fulham. I knew he wouldn't be able to play again, but I prefer that he made the decision.
"He's started working with me today, because my physical trainer and assistant work with the first team and the young players.
"Chris has the human possibility to manage at a high level, because he is a leader. Now he has to work on it."
We at FulhamMAD would like to thank Chris for all he has done as a player to help Fulham get where they are today and wish him every success in his new role at the club.
