The ex-Orlando Pirates defender is now in charge of Highlands' reserve team.
Jackson and first team coach Owen da Gama, another former Pirates player, previously worked together at Stars.
They oversaw trials for the Lions of the North in Gauteng on Wednesday, which attracted over 300 hopefuls.
The club's co-director Sinky Mnisi confirmed Jackson's appointment.
"Yes, it's true. He is part of the club and is the new coach of the MDC team."
Jackson was released by Dikwena in July 2017 before Peter Butler and soon after Roger de Sa took charge of the side, which ultimately suffered relegation to the National First Division.