He left Sunderland after eight years to join Manchester United in 2002 as reserve-team coach before switching to Bolton in 2005.
Now Sbragia has opted to join United legend Roy Keane back at Sunderland.
"I have thoroughly enjoyed my time at Bolton," said Sbragia.
"The club has got great staff, players and fans and I wish them all the best - except when they are playing Sunderland!"