The 51-year-old and assistant Jimmy Bell have signed rolling contracts at the club after James Beattie quit last Friday following 16 months in charge.
Coleman and Bell spent 13 years with Accrington and guided the club back to the Football League in 2006 before moving to Rochdale in 2012.
"We hope this is going to be an exciting time for the players, staff and supporters," Coleman told the club's official website.
"It's certainly an exciting time for me and Jimmy. We've never really stopped supporting the club since we left, we've seen a lot of games and we can't wait to work with this group of players.
"It's no secret that I've wanted to manage in the Football League again and when a job comes up at a club as close to your heart as Accrington then that ticks two boxes."
Stanley chairman Peter Marsden said: "I would like to welcome back the on the pitch architects of the modern day Accrington Stanley, John Coleman and Jimmy Bell, who helped turn Eric's dream in to a reality.
"John and Jimmy's passion and enthusiasm and knowledge of the game are legendary.
"We have to get the feelgood factor back and we need to get our gates back up to a respectable 2,000. It will take time but Coley and Jimmy can do it."