Lovelace, 46, joined the organization as a professional scout in 2001 and was promoted in 2006 to special assistant to the general manager, where he dealt mainly with pro scouting and reported to Colletti on roster moves and player acquisitions.
Colletti used the occasion to praise Lovelace and deliver a sermon on the values of scouting and player evaluation.
"In my four years with the Dodgers, Vance has proven himself to be a trusted advisor and a keen judge of baseball talent on the Major League level," said Colletti.
"I think he will flourish in his new role overseeing all of our professional scouts and I look forward to strengthening our working relationship in 2010 and beyond. His passion for baseball and for the Dodger organization will help many advance to a higher level."
Lovelace, a hard-throwing left-handed pitcher, was traded to the Dodgers with Dan Cataline for Ron Cey in 1983 and pitched in the Major Leagues for the Angels and Mariners.
Colletti inherited Lovelace when he arrived in 2006, talked him into rejecting an offer from another club to stay with the Dodgers, and now has entrusted him with coordinating all professional scouting.
"Vance Lovelace approaches every day with this organization with more passion and pride and determination than anybody I've been around in the organization," said Colletti. "He's relentless, he's tireless. You ask him a question, his mind thinks, 'How does this help the organization?' not 'What will this do for me and my career?"
Colletti cited Lovelace for the way he and special assistant Toney Howell compiled and delivered last year's scouting report before the club's sweep of the Cubs in the National League Division Series.
"Guys in my spot can only be in one place at one time. Guys like this help you be in more than one spot at one time," he said.
"We may leave here without one new player, but that doesn't mean we haven't accomplished something as a group. The way you get better is talking in a group and talking to other teams and raising voices and making strong points and countering other people's strong points. We're not close to making a trade, but we're making progress because we've got the right people in the room."
Colletti said Lovelace will join him on an ice fishing trip to Saskatoon in early January.
Ken Gurnick is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.