They have selected the former Grimsby Town manager Marcus Bignot as the replacement for Jon McCarthy.
Bignot, who has been helping out at Barrow as assistant to Micky Moore, has accepted the role at the Deva Stadium.
Chester have had a poor start to the new season and having gone 14 matches without a home win, the board acted.
Bignot has plenty of Non-League experience and took Solihull Moors into the Vanarama National League in 2016.
Chester currently sit in the relegation zone having won just once this season, away to Aldershot earlier this month.
Other names in the frame for the job included former Hartlepool manager Ronnie Moore and ex-Luton and Tranmere Rovers boss Gary Brabin.