Cotterill will replace David Kevan, who has been caretaker following Hans Backe’s departure earlier this season.
“Steve Cotterill is a man that we know plenty about and who was always top of our list of preferred managers when we first took over at Notts County,” said County chairman Ray Trew.
“Steve brings with him a wealth of experience both as a player and a manager and I believe that he has the pedigree to guide this club forward.
“Having spoken with Dave Kevan, it was agreed that the time was right to bring in an experienced manager to lead the team through the remainder of the season.
“Whilst Dave was happy to continue in the role of caretaker manager for us until the end of the current campaign, the chance to secure Steve Cotterill’s services was too good an opportunity to turn down.
“I’d like to once again thank Dave for all of the hard work that he has put in already this season and I am delighted that he has agreed to stay on as assistant manager.”