Argyle, whose chairman Sir Roy Gardner and chief executive Keith Todd have stood down, are in dire financial straits and were handed a stay of execution in the High Court earlier this month after a judge gave them until February 9 to pay an outstanding £700,000 tax bill.
And they have now turned to the 58-year-old to assist deputy chairman Paul Stapleton and the rest of the board on footballing matters, initially until February 8 - a day before they return to the High Court.
Ridsdale told the club's official website: "It is a privilege to be asked to work with the directors of Plymouth Argyle at this difficult time in the club's history.
"From what I have seen, the financial situation is precarious and no one should underestimate the challenge that faces this club in surviving the short-term financial pressures.
"The supporters, staff, manager and players have been magnificent during these difficult times and we will do all that we can to give the club the chance to avoid administration and rebuild for the future.
"I initially came to talk to Argyle regarding investment but, the true financial position that became apparent was significantly worse than had been volunteered.
"Everyone will be working together to produce a positive outcome."
Current Argyle manager Peter Reid was appointed Leeds boss by Ridsdale in March 2003 and has led his side, who were relegated from the npower Championship last season, to 15th in League One.
Source: PA
Source: PA