Speed is now helping in the preparation for the match against West Ham on Saturday which could see Bolton cement a place in the UEFA Cup.
Steve Cooper, who heads the school of excellence, is certain the 37-year-old will be a success.
Toon Old Boy Promoted At Bolton
Cooper: "When you go through coaching courses today, you gain experience and knowledge. You have got to get through it properly. No mug gets an A licence. You have to have something about you.
"I am sure Gary will be a success in his new role. He has a head start because of his great playing career."
Speed: "I am saddened by the departure of Sam Allardyce - he has created a legacy that everyone is proud of here at Bolton. But everyone knows that life must go on and we have the responsibility of taking Bolton forward.
"I am delighted to be joining a new exciting era for the club under the leadership of Sammy Lee.
"Sammy has great ambition to take the club forward and I am looking forward to being part of that process."
1998/2004 G.Speed 275/8 39
Cost £5.5m from Everton, after he won a Championship winners medal at Leeds. Good, strong midfielder who took his time to settle into the team, but had a great understanding with Rob Lee. Gets most of his goals attacking from deep on corner-kicks, sneaking in unnoticed on the near post. Welsh international skipper. Joined Bolton the summer of 2004.