Cole has been brought in until the end of the season "with an option to renew upon the fulfilment of certain conditions", Cesena said.
"The entire Cesena FC family is thrilled to welcome manager Ashley Cole as head coach of the first team and extends a warm welcome to him and his staff in Cesena, wishing them all the best of luck in this new adventure," the club added.
Cole, who as a player won three Premier League titles with Arsenal and Chelsea and the Champions League in 2012, had previously been assistant coach at Everton and Birmingham City, as well as with the England under-21 and senior teams.
The 45-year-old arrived at Cesena following the sacking on Saturday of Michele Mignani, who was dismissed after a run of seven matches without a win put their place in the Serie B playoffs at risk.
Owned by American businessman Mike Melby, Cesena sit eighth in Serie B, the final playoff spot, but are only two points above Sudtirol with eight matches remaining in the regular season.
Cole played 107 times for England and was considered one of the best full-backs in the world, representing his country in three World Cups and two European Championships.