It follows days of pressure to deny the 62-year-old the role over a series of allegations.
Critics raised numerous concerns over allegations agaist Mr Abbott including, misogyny, homophobia, climate change scepticism and belief that coronavirus restrictions should be lifted.
But Prime Minister Boris Johnson defended him, heralding his status as a former leader of “freedom-loving” and “liberal” Australia.
The Department for International Trade has now formally announced that Mr Abbott will form part of the new-look Board of Trade, in what is said to be an unpaid role.
Mr Abbott is named as an adviser alongside senior figures from business, academia and government.
International Trade Secretary Liz Truss said: “The new Board of Trade will play an important role in helping Britain make the case for free and fair trade across the UK and around the world.
“At a time of increased protectionism and global insecurity, it’s vital that the UK is a strong voice for open markets and that we play a meaningful role in reshaping global trading rules alongside like-minded countries.
“The new Board will help us do that, bringing together a diverse group of people who share Britain’s belief in free enterprise, democracy, and high standards and rules-based trade.”
Ms Truss will be president of the Board of Trade, and Conservative MP for Yeovil Marcus Fysh will serve as deputy president.
The other advisers are Karen Betts, Anne Boden, Daniel Hannan, Patricia Hewitt, Emma Howard Boyd, Michael Liebreich, the Lord Mayor of the City of London, William Russell and Dr Linda Yueh.
Ms tweeted: “The new Board of Trade will play an important role making the case for free and fair trade.
“The board brings together a diverse group of people who share Britain’s belief in free enterprise, democracy, high standards and rules-based trade.”
Shadow justice secretary David Lammy tweeted: “Earlier in the week the government as much as admitted Tony Abbott is a homophobe and a misogynist. They just don’t care.”