Gill will be working with former Guiseley and Hednesford striker Stewart Airdrie, who took over in charge at The Silentnight Stadium last week.
Gill, 30, who managed Oakworth in the Craven League last season and has a long local football history in and around Keighley, said: “It has been a tough decision but one which I believe is right for my career now.
“My playing days are at the end and this maybe a stepping stone to the next part of my career.
“I would like to wish the management committee and players at Silsden all the best for the rest of the season and beyond.
“Andy Geary and Ryan Haigh are doing a great job in getting a good group of young lads together (too young for me to keep up with) and I am sure they will become a good strong team.”
Gill broke his leg badly in 2006 and said that had taken its toll.
“I’m ready to wind down a bit and play when needed, which is why this roel suit sme more.,” said Gill, previously played for Barlick under Geary
“I’m looking forward to going back there.”