Hunt, who led Great Britain's med to Olympic team pursuit gold in London last summer, has already worked with Team Sky during their inaugural season in 2010 but will now devote his entire focus to road cycling.
"I want to learn the races and re-learn the job of a sports director," Hunt said. "But maybe also bring different things to the table, because I'm not an ex-pro. I haven't ridden these races, so I've got a bit of homework to do.
"I need to expose myself to as much racing as possible to maximise my learning over the first year. I want to be a good DS (directeur sportif) and it's going to take time to get there."
Hunt will link up with some familiar faces at Sky, namely Geraint Thomas and Pete Kennaugh who were both members of the British men’s team pursuit squad last summer.
“Having done a bit of DSing in 2010 it was actually quite hard to go back to the Olympics, particularly two years out from the Games,” he said. “But I’m really glad I did as I wouldn’t want to have missed out on the experiences that I’ve had. Equally I don’t want to do another four-year cycle as Olympic coach - I want to move into DSing.
"I don't think it gets any better than Olympic gold at a home Olympics, from a coaching point of view," he added.
"It's a great time to bow out and start a new challenge and I'm really excited about the project."
Hunt's new duties commence at the Mallorca Challenge in the first week of February.