Mr Bracks was named as Australia's special representative for the Greater Sunrise gas fields project by the federal government.
The gas field is located off the northwest coast of Australia in the Timor Sea, with East Timor entitled to about 70 per cent of royalties from the project.
While the Timorese government wants the gas from the project piped to a site on its southern coast, Australian energy company Woodside, which controls a third of the project, wants it sent to an established hub in Darwin.
Foreign Minister Penny Wong said the gas fields were critical to East Timor's economic development and its resilience in the face of growing tensions in the Pacific.
Senator Wong said the former premier would play a key role in the project as a special representative.
"Mr Bracks will represent the Australian government and consult with the government of Timor-Leste and other key stakeholders, including the Sunrise joint venture," she said in a statement.
"He has deep knowledge of Timor-Leste and a close relationship with its people and leaders as a result of his close engagement over many years."
The foreign minister was in Dili in September to hold talks with East Timor's president Jose Ramos-Horta, which included discussions on the gas project.
Dr Ramos-Horta had previously called on the federal government to help bring the Greater Sunrise project to his country.
He said the project would allow the country to become another dynamic economy on par with Dubai or Singapore.
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