Warne to lead Jaipur in IPL
Chief executive Fraser Castellino of Emerging Media, which owns the Jaipur franchise, said they were looking for a "legendary cricketer".
"Shane's commitment and astute cricketing brain makes him one of the most respected cricketers in the history of the game," he said.
Warne is one of the four foreign cricketers in the side, others being South African captain Graeme Smith and Pakistan's Younis Khan and Kamran Akmal.
Smith emerged the team's highest-paid overseas player after last week's auction in Mumbai with $503,890, followed by Warne ($477,370), Khan ($238,735) and Akmal ($159,160).
Each player will receive his auction price as an annual wage over the initial three-year contract. The IPL starts on April 18.
"Our main goal is to build a winning Twenty20 team. Reputation and track record in Tests and one-day internationals are not necessarily relevant when it comes to Twenty20," Warne said in a statement.
"I am very happy with the list of players chosen at the auction. They are all part of the strategy to building a winning team. I am looking forward to leading the side, to playing with the boys and to a successful season."
Warne, 38, quit international cricket last year after bagging 708 wickets in 145 Tests and 293 in 194 one-day internationals.
Spin doctor
Meanwhile, Warne has called on the Australian selectors to take three or four spinners on this year's tour of Pakistan.
The comments come after yesterday's retirement of Australian spinner Brad Hogg from international cricket.
Warne is working for Cricket Australia (CA) in a mentoring role for emerging spinners.
He says the tour of Pakistan would be an ideal opportunity to groom some of the country's up and coming cricketers.
"Hopefully the next tour the Australian selectors might take three or four spin bowlers and get them all working together - whether it's Dan Cullen, or Cullen Bailey, or Haury (Nathan Hauritz) or Bryce McGain," he said.