John Barnes revealed he always fancied the idea of managing Tranmere following his appointment at Prenton Park.
Barnes, 45, has been unveiled by the League One outfit and will be assisted by former Liverpool team-mate and ex-Tranmere midfielder Jason McAteer.
Barnes, who has signed a two-year contract, and McAteer both live locally on the Wirral, and Barnes said: "Tranmere was always a club I admired."
He continued: "I was really impressed with the work Tranmere did in the community. I know they're a strong family club and the work the players do reminds me of my days at Watford.
"I always felt it would be a fantastic place to come and work. I am local, and Jason is even more local than me."
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