John Barnes is looking forward to the challenge of League One with Tranmere Rovers.
Barnes has signed a two-year contract and will be assisted by his former Liverpool team-mate Jason McAteer.
He said: "Nobody will put limitations on me by saying 'you can't do this in League One' or 'you know nothing in League One'.
"Regardless of whether or not I know anything about League One, I believe I know how to create a working environment that can make a team successful."
Kenny Dalgleish told the Sunday Mail, "John deserves to be back in the game. John has good ideas and a solid knowledge of the game.
"The Tranmere players will enjoy working for him. He will get them playing good football, the way he had Celtic playing.
"For some reason John had always wanted to boss Tranmere.
"He's there now and will do well. He was in charge of Jamaica recently and had a good record. John's time out of the game hasn't been wasted. He was always in touch with what was going on at different levels.
"Tranmere weren't far off the play-offs last season so John has something to work with.