Mark Wright has been appointed as Chester manager until the end of the season.
The former Liverpool and England defender returns to the Deva Stadium 18 months after his first spell with the club ended in acrimonious circumstances, on the eve of their return to the Football League.
Wright was sacked by Peterborough last month on the grounds of gross misconduct.
He was suspended by owner Barry Fry amid rumours of a bust-up and dismissed by the League Two club following his failure to attend a disciplinary hearing at London Road.
He has since launched legal action against Peterborough, the 42-year-old suing for alleged breach of contract and the harm caused to his reputation.
Chester are currently 19th in League Two and parted company with former manager Keith Curle at the weekend after suffering an 11th defeat in 12 games - 2-0 against Leyton Orient.