The five-time All-Australian played 200 games for Richmond before an ACL injury brought an end to his decorated career in 2019.
This isn't Rance's first affiliation with the Bombers however, having he helped fill in for their VFL team last year in a game against Southport earlier this season.
“I’m really excited to join the Bombers as a development coach for next season,” Rance said via the club's statement.
“I couldn’t think of a better place to start my journey as a coach in the AFL. Having familiar faces in ‘Truck’ (Ben Rutten) and ‘Cara’ (Blake Caracella) around to work with was really appealing to me.
“I really enjoyed my experience with the VFL Bombers up in Queensland earlier this year, and I loved helping those young players grow and learn, which will be a big part of my role here.
“I can’t wait to get started and help the club towards success.”
Rance will work alongside Bombers development coaches Leigh Tudor, Jack Jones and Cam Roberts at Essendon.