"The former striker of the French national team returns to Monaco, where he was trained and played between 1993 and 1999," the club said in a statement.
"I am very happy to come back to AS Monaco and extremely determined to meet the challenges ahead," Henry said. "I cannot wait to meet the players to start working together."
Monaco's vice president and CEO, Vadim Vasilyev, praised the Frenchman and expressed his support for the new coach.
"His knowledge of football, his passion for the game, his high standards and his commitment to our colours make his nomination a reality," Vasilyev said, in reference to Henry.
Jardim, 44, was the coach of Monaco starting from the summer of 2014 and had a contract until 2020.
However, Jardim's last win in 2018 with Monaco was on August 11 over Nantes, while the club suffered three draws and five defeats in the first nine matches of the French league, including a 1-2 home fall to Rennes on Sunday.
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