The 56-year-old has joined the Robins on a deal until the end of the season after leaving his post at struggling League One rivals, Wigan Athletic this week.
Sheridan was unveiled exactly two years on from Town’s last full-time managerial appointment and replaces fellow Mancunian, Richie Wellens who left to take over at League Two outfit, Salford City earlier this month.
Upon signing his contract with the club, Sheridan told Town’s website: “I’m very pleased to be here. I get the opportunity to manage a good club who were successful last season and a club who are trying to get promotion in a really tough league.
“I know Paul Jewell and the Chairman and I’m very pleased they’ve given me the chance to come and work at a good club.
“There’s a few players here that have worked under me before, some really good players at this club and it’s a team I feel we can push in the right direction.
“We all know the aim here, which is to try and get us up the table. We have a couple of games in hand so hopefully we can get a few quick results and build a bit of confidence.
“I know it’s very early, but I’m hoping a new face will bring a bit of a spark. We’ve got three big games coming up and hopefully we can win a couple of them.”
Sheridan has previously worked under Town owner and chairman, Lee Power at Irish club, Waterford. Following his termination at Chesterfield on January 2, 2020, the 56-year-old took over at Waterford for an eight-game spell in July before returning to England to take the top job at Wigan in September.
Once a midfielder for Leeds United during the 1980s, Sheridan brings a wealth of managerial experience from 13 previous jobs across his 17-year career.
Since leaving Plymouth Argyle in 2015, Sheridan has failed to hold down a job for longer than a full year – with his longest spell in that time coming in his second spell at Chesterfield where he held the top job for 358 days.
During his first stint at the Spireites, Sheridan achieved promotion to League One in 2011 before enduring a strange second season.
His Chesterfield team beat Swindon Town 2-0 in the EFL Trophy at Wembley Stadium to lift the title in March before being relegated a couple of months later.
Sheridan’s first game in charge of Swindon will be away to fellow strugglers, Shrewsbury Town on Saturday.