Villas-Boas will compete in the 2018 Dakar Rally alongside Ruben Faria, a former professional motorcycle racer.
The former Zenit St Petersburg coach had planned to take part on a motorcycle himself, but was advised to attempt the race in a rally car.
Villas-Boas said: “I spoke with my friend Alex Doringer, the manager of the KTM team, who told me that I would still need a full year’s preparation to get there and that it was better to consider doing it with a car.
“So I got in touch with Team Overdrive and here I am!”
In 2013, Villas-Boas spoke of his intention to retire early from football in order to take part in the rally, saying to O Jojo newspaper:
“My passion for football makes me live it very intensively over 11 months and dedicate myself to that, but I think life allows you to enjoy other things.
“For me, there is a limit and, in the next five to 10 years, I will quit coaching.
“To compete in the Dakar Rally is a lifetime ambition for me and is something I know I have to do.
“It went from a passion to an obligation, a destination of life, but I can only do it when I leave football. I will do it.”