She will begin a two-and-a-half-year deal next week, leaving an academy post with Women’s Super League side Everton.
The 30-year-old Swede played for Rosengard, Kristianstad, Eskilstuna United and Hammarby but retired as a player aged 23 through injury.
She replaces Fran Alonso, who left Celtic women for Houston Dash after nearly four years in charge last month.
Sadiku begins her new role on Monday. David Haley, who will remain assistant manager, will take charge for Sunday’s SWPL match against Montrose.
“This is such a great day for me and my family, to join a club of Celtic’s standing and stature at such an exciting time for our women’s team,” Sadiku said.
“It is a real honour and I can’t wait to get started, particularly with so many important games coming up.
“The league in Scotland has really developed in the last few years and Celtic have had great success. My role is to continue this. I will bring passion, energy and dedication to this role.”
Sadiku, who represented Sweden at various youth age groups, turned to coaching after her playing career ended because of injury. She started by setting up the girls’ academy at Hammarby and progressed to coaching with Swedish champions Rosengard.
She gained experience in the Women’s Champions League during her time on the coaching staff at Fortuna Hjorring in Denmark.
Celtic chief executive Michael Nicholson added: “Elena was identified as an outstanding appointment. She has worked across Europe and beyond in a variety of roles and in different environments and we are sure Celtic will benefit from these experiences.”
Everton boss Brian Sorensen has brushed aside Chelsea manager Emma Hayes’ remarks regarding relationships between players. He believes that these connections can’t be compared to player-coach relationships.
Meanwhile, Leicester City’s Willie Kirk is facing an inquiry from the club following allegations about a player-coach relationship. The issue of player-coach relationships in women’s football caused quite a stir among Women’s Super League coaches this week, reports the Mirror.
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