The controversial all-rounder, who has been limited to media work since his retirement three years ago, has been asked to act as a technical adviser on this winter's tour of Zimbabwe and New Zealand.
Botham, England's leading Test wicket-taker, will be on the winter tour as a television commentator.
But he will also be involved in bowling coaching as England try to prepare for next summer's Ashes series against Australia.
Lloyd said: ``I have wanted Ian to be involved with us for some time. And this winter we will be using his technical skills -especially on the bowling side.
''Ian is very happy to be asked -- and the invitation has come from me. I have been mates with him for a long time and this is a personal arrangement''.
It is not thought that any money is involved and Botham's involvement represents a major coup for Lloyd, who took over as England coach on a full-time, two-year contract at the end of the summer after initially being given the job on a trial basis back in April.
The England team leave for their 14-week tour on November 25 and Botham is expected in Zimbabwe shortly before the first of two Tests against the Zimbabweans either side of Christmas.
England then play three Tests in New Zealand in the New Year.