Paul will be assisting Richard Beale with the Under-23s.Steve Cotterill
The decision was taken after discussions with Manager Steve Cotterill.
Robinson, 38, has intermittently coached the Development Squad and various Academy age groups over the past couple of years.
But with his First Team playing chances reduced, it was agreed that he now helps Senior Professional Development Coach Richard Beale on a more permanent basis.
Cotterill confirmed: "Paul will be assisting Richard Beale with the Under-23s.
"Paul has been a great servant to this Club, he has played with great passion, great desire and hopefully he will hand that over and the benefit of his experience to the younger players.
"It is probably a route he has been looking to go down for a while now. He has already done bits of it, now he will be doing a lot more.
"Paul is a great lad to have on board and this is probably the start of a new career for him and hopefully a successful one."
Lee Carsley was brought in during the summer as Head Professional Development Coach, but since becoming Cotterill’s Assistant Manager he has naturally been unable to devote as much time to the emerging youngsters.
Robinson, who remains registered as a player, has spent five years at Blues since joining initially on a month-to-month basis to help out during an injury crisis in September, 2012.
He has amassed 174 appearances, scoring four goals.
When he finally hangs up his boots he will pursue a career in management or coaching.
Robinson also stepped up to assist Carsley at First Team level when he took the caretaker reins this season following the dismissal of Harry Redknapp.