The former Yeovil Town manager has been working in youth football in recent seasons before stepping up at Fleetwood Town and now feels the time is right to be a number one.
The Romans are just one spot above the National League South drop zone, but are boosted by Saturday’s 3-0 win over Aveley.
Caretaker Lee Kendall will stay on as part of a new management team, it has been announced.
“I’m really excited to be joining Bath City, a club with a proud footballing history and a great reputation,” Way told the club’s website.
“I’ve been to Twerton Park a number of times during this process and know that this is a very special club with a fantastic supporter base.
“I can’t wait to start working with the players, Lee and all the support staff to help this team and this club reach their potential this season but also to realise our shared ambition of promotion in seasons to come.”
A statement added: “The club would also like to say thank you to Lee Kendall for stepping up to lead the squad and making so many positive improvements, and to the senior players who helped throughout.
“We are delighted that Lee will be staying on as Assistant Manager to Darren.”