Alonso came through his boyhood club's reserve team, known as Sanse, before going on to win the Champions League with Liverpool and Real Madrid.
He was appointed on a two-year deal in June and began his new role on Tuesday.
"It's a beautiful day and very special," said Alonso, 37. "Everything I've lived was born here, first in Sanse and then in the first team."
Alonso made 124 appearances for Real Sociedad, helping them qualify for the 2003-04 Champions League, before winning Europe's premier club competition in his first season with Liverpool in 2004-05.
Real Sociedad's club president Jokin Aperribay, addressing Alonso, said: "This is one of my most important days as president. Your return joins the past with the present, history with emotions.
"That a football figure like you comes back is an honour for us. If you teach half of what you know we will make a champion team."
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