Shedden, 51, served as an assistant coach for Canada at the tournament over the last three years. He is currently the head coach of EV Zug in the Swiss A League, a position he has held since 2008.
The former NHL player was head coach of Finland's national team in 2007-08 and guided the squad to a bronze medal at the 2008 IIHF world championship in Halifax and Quebec City.
Chris McSorley will serve as an assistant coach at the Dec. 26-31 tournament in Davos, Switzerland. He has been the head coach of Geneve-Servette in the Swiss A League since 2001.
"We are extremely pleased with the experience of our coaches that will lead Team Canada at the Spengler Cup this year," said Brad Pascall, Hockey Canada's vice-president of hockey operations/national teams. "Doug brings great international experience to the position as head coach and knows this event well, and Chris has a vast knowledge of the Swiss League and has done a great job with Geneve-Servette in making them into one of the strongest and most consistent teams in Europe."
As a player, Shedden recorded 325 points over 416 games with Pittsburgh, Detroit and Toronto from 1981 to 1991.
The Canadian roster will be announced in mid-December. The team will be made up of pros playing in Switzerland and may include American Hockey League players on loan from NHL teams.
Canada has appeared in nine of the last 12 championship games at the Spengler Cup, winning the tournament in 2002, 2003 and 2007.
The Spengler Cup has been held annually since 1923. It is the oldest professional international hockey tournament in the world.
Note to readers: This is a corrected story. A previous version said the 2008 world championship was in Halifax, instead of Halifax and Quebec City.