Blues president John Davidson said McRae, who accumulated 2,457 penalty minutes in 576 games, would have primary responsibilities in the Ontario Hockey League.
"We are proud to have Basil back with the organization and finding young talent for us," Davidson said. "He is a terrific individual with tremendous hockey knowledge."
McRae also played for the Quebec Nordiques, Toronto Maple Leafs, Detroit Red Wings, Minnesota North Stars, Tampa Bay Lightning and Chicago Blackhawks during a 16-season career, helping Minnesota reach the Stanley Cup final in 1990-91. He had 53 goals and 83 assists.
In four seasons with the Blues in the mid-1990s, McRae had 14 points and 313 penalty minutes in 112 games.