Olazabal joins roster of European vice-captains for Ryder Cup
Olazabal enjoyed a stellar playing career in the biennial contest against the United States before leading his side to victory in the "Miracle at Medinah" in 2012.
The 57-year-old won a total of 20.5 points in his seven appearances, with 12 of those coming from 15 matches in partnership with fellow Spaniard Seve Ballesteros.
Olazabal, who was also vice-captain in 2008, 2010 and 2014, joins Thomas Bjorn, Edoardo Molinari and Nicolas Colsaerts in Donald's backroom team.
The two-time Masters champion said: "With my previous experiences in the Ryder Cup I am obviously thrilled to be back involved once again.
"I am really looking forward to feeling that special adrenaline flow, the intensity and the electricity that only the Ryder Cup can bring."
Donald, who was sent out first by Olazabal in the Sunday singles at Medinah, said: "Just his mere presence brings energy to any Ryder Cup environment and I saw that first hand when I asked him to be involved."
Donald set the tone that day beating Bubba Watson as the Europeans stormed back from trailing 10-6 overnight to win 14 1/2 to 13 1/2.
The 2023 Ryder Cup takes place in Rome from September 29 to October 1.