Greaves will report to Royal, who takes over from 2011 midfield coach Scott West.
New senior coach Mark Neeld said he was delighted to secure Greaves.
“I am very pleased to have Aaron on board in this development role. The combination of his coaching skills from the Geelong Falcons, and his work with the VIS in the area of athlete development, will all ensure that he adds quality to our growing coaching group,” he said.
A highly-respected coach from the Geelong region, Greaves coached the Falcons in 2010-11.
A former VFL player with Geelong, he previously coached Leopold in the Geelong Football League.
Greaves, who has a physical education background, has also worked with Victorian Institute of Sport.
Royal played 199 matches and kicked 299 goals for the Bulldogs from 1983-93. He then coached the Bulldogs reserves in 1996-97 and became the club’s assistant in 1998-99.
He then joined Melbourne in his first stint from 2000-03, before spending 2004 with North Melbourne. From 2005-09, he was with Richmond and in 2010 he joined St Kilda.
Royal returned to Melbourne in 2011.
These announcements follow the appointment of Neeld last Friday and elite performance manager David Misson on Tuesday.