74-year-old Vellu stepped down last week as president of Malaysia's largest ethnic Indian political party, the Malaysian Indian Congress, which he headed for more than three decades.
Malaysian Prime Minister Najib Razak made the announcement of Vellu's new posting while launching his biography entitled A Life. A Legend. A Legacy in Kuala Lumpur on Sunday.
Samy Vellu's role as special envoy with ministerial status will come into effect next month. Vellu held the portfoio of works minister in the cabinet of former premier Abdullah Badawi.
Najib said Malaysia did not want to lose Vellu's talent and many local companies would surely benefit from the appointment.
The 200-page book was written by Bernice Narayanan and is filled with pictures that describe Samy Vellu's illustrious journey, from being a humble rubber tapper's son to becoming one of Malaysia's prominent leaders.