Gianfranco and his backroom team have all agreed two-and-a-half-year contracts.
The former Italian international, West Ham United and Watford manager, 50, was identified by new owners Trillion Trophy Asia Limited as the ideal man to lead Blues forward in a new direction.
Joining Gianfranco at Blues are Pierluigi Casiraghi and Gabriele Cioffi as First Team Coaches, Kevin Hitchcock (Goalkeeper Coach) and Sebastiano Porcu (Video Analyst).
Club Director Panos Pavlakis said: "We are delighted to welcome Gianfranco and his backroom team to the Club.
"His pedigree, philosophy and ambition fits with what we would like to achieve as we move in a new direction.
"Gianfranco has a wealth of top-level experience as both manager and player and we are extremely excited about his appointment."