The Romans have been without a permanent boss since Gary Owers left on September 13th to become manager of Torquay United.
Jim Rollo has been in charge since and will assist Bath's new man.
Gill, 47, made over 160 appearances for the club between 1990-96 before going on to play for Yeovil Town, Birmingham City, Northampton Town, Cheltenham Town and Forest Green Rovers.
As a manager, Gill had a short spell at Weymouth in 2010 and then joined Bristol Rovers as a youth team coach.
He spent almost two years as director of Kidderminster Harriers' academy before heading to Norwich City to work as a scout and then U18s manager.
Since 2015 he has been the U18 head coach at Wolverhampton Wanderers' academy.
Chairman Nick Blofeld said: “We’re really excited to have Jerry join us as our new Manager. He’s a very talented coach who has worked with some of the best managers and young players in the country, and is well thought of throughout the game.
"Now is the right time for him to step up to first team management with our strong, experienced squad. We’re really looking forward to him joining us and building on our strong league position.”
Gill added: “I’m delighted to re-join Bath City as manager. The Club have always had a big place in my heart and it’s great to get the chance to manage the team here. I’m confident that I can use my knowledge and experience to help develop the team and will also look to strengthen the squad a little and build on the firm foundations that already exist here.”
Football Chairman, Paul Williams, commented: “In conversations with Jerry since the interview process began I have been impressed with his vision and plans for the future of the Club and I look forward to working with him”.
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