The former Italy and Juventus boss was at the helm of China for more than two years before leaving the post in January after a quarter-final exit at the Asian Cup.
He was replaced by Fabio Cannavaro, who stepped down last month to focus on coaching Guangzhou Evergrande Taobao.
The Chinese Football Association (CFA) confirmed it had once again appointed Lippi.
"The Italian football coach Marcello Lippi became the head coach of the Chinese national men's soccer team," it said in a statement.
Lippi is set to take charge next month, when China face the Philippines and Tajikistan in friendlies.
The draw for the second round of 2022 World Cup qualifying in Asia is scheduled to be held on July 17, before the action starts in September.