The man who led Sweden between 2006 and 2014 is swapping politics for banking, his new employer confirmed in a press statement on Tuesday.
Reinfeldt, 50, who also served as president of the European Council in 2006, has been hired as a senior adviser for the bank in Europe, the Middle East and Africa.
Johan Lustig, head of Nordic Corporate and Investment Banking for Bank of America Merrill Lynch, called the ex-PM "one of Europe's most highly respected politicians in recent years."
"He will bring unique insight to our clients and colleagues and I look forward to working with him closely," Lustig added.
The former Moderate party leader has largely shunned the limelight since his centre-right coalition government was ousted in Sweden's last general election 18 months ago.
In February 2015 he launched his own business, offering lecturing and advisory work.
He has also attended a number of international gatherings including the UN climate summit in New York and at the Confederation of British Industry's (CBI) annual conference in London, when he warned that Europe needs to be better prepared for future financial crises.
A year ago he announced he had started dating his former press officer Roberta Alenius, having separated from his wife Filippa Reinfeldt in 2013, and the couple are understood to be living together.
Former economist Anna Kinberg Batra has been leading the Moderate party since January 2015.