Cremonese hired Marco Giampaolo on Wednesday after sacking Davide Nicola due to a desperate run of form which left Jamie Vardy's Serie A club staring at relegation.
In a statement, Cremonese said experienced Giampaolo, 58, "has been appointed first team coach" following the dismissal of Nicola, who paid the price for a 15-match winless run.
Giampaolo had previously coached Cremonese during the 2014/15 season when the club were in the third tier, and was most recently in charge of Lecce who he kept in Serie A last term.
Owned by local billionaire steel magnate Giovanni Arvedi, Cremonese were promoted to Italy's top flight last season and started the season strongly with wins over AC Milan and Sassuolo.
Cremonese were sat in the top half of the table after beating Lecce on December 7, but since then they have picked up just four points and dropped into the relegation zone last weekend following a 4-1 home drubbing at the hands of Fiorentina.
They signed Vardy in September on a one-year deal with an option for another season should they manage to stay in the top flight.
The former Leicester City and England striker, 39, has scored five times this season, his last goal coming back in early January in a 2-2 draw with Cagliari.