Coyotes general manager Don Maloney says Anderson was signed Tuesday to a multiyear contract.
Anderson was promoted from Atlanta's top minor league affiliate in June 2008 and became the Thrashers' fourth coach. He was fired in April 2010 after going 70-75-19 over two seasons.
In 11 seasons as coach of the Chicago Wolves, Anderson's teams made the playoffs 10 times and won five championships in the American Hockey League and International Hockey League.
Anderson was Toronto's first-round pick in the 1977 draft. He played 814 NHL games with the Maple Leafs, Quebec Nordiques and Hartford Whalers from 1977-89.