The former world champion will be a member of Sky's team for the Australian, Bahrain, Monaco, British, German, Hungarian, Belgian, Indian, United States and Brazilian Grands Prix.
Speaking about his new job, Hill said: "The plans Sky Sports have for Formula 1 are very impressive, particularly the dedicated Formula 1 channel and I couldn't resist becoming involved.
"There are so many reasons to be excited about the new season and I can't wait to get started."
Hill will be on call throughout practice, qualifying and the race, with Sky Sport Executive Producer Martin Turner saying he was delighted about the addition to the team.
"Damon Hill is a British motor racing legend and has incredible Formula 1 knowledge and insight," he explained. "He will provide our viewers with not just a driver's eye view, but also that of a world champion. There aren't many around and I'm delighted we'll have Damon with us during the season."
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