The 38-year-old will serve as a basketball operation associate.
"We are very excited to have Sue join our organization," Nuggets president of basketball operations Tim Connelly said. "Her resume certainly speaks for itself and as a still-active player she will offer an extremely unique perspective."
Bird led the Seattle Storm to their third league championship this past season.
The former UConn star was selected first overall by the Storm in 2002 and is the WNBA's all-time leader in career games and assists.
"I'm really excited to join the Denver Nuggets organization," said Bird. "I'm thankful for the opportunity and look forward to learning from some of the best."