The former Aston Villa coach said that he "cannot wait" to get started at the County Ground, and expressed optimism about his team's prospects for the season run-in.
"I am proud to become manager of Swindon Town and delighted that Jed McCrory and his new board at Swindon have shown such faith in me. I cannot wait to get cracking with the job in hand," he told the club's official website.
"The club is in a good position in League One but the players and everyone connected with the team now have to apply themselves to achieve the best possible finish to this season and beyond."
The 52-year old will meet his players for the first time on Friday morning ahead of this weekend's League One clash with Coventry City.