The 46-year-old returns to Bloomfield Road after a brief spell in charge in 2012 and has signed a four-year deal.
The former Lincoln City boss has expressed his excitement at managing the Championship club.
Speaking to Blackpool FC, Appleton said: “I’m really excited for the challenge that lies ahead and I can’t wait to get started.
“After leaving my previous job at Lincoln, I was always looking for the next challenge to get my teeth into. To come back here at this moment after two really successful years at the Club is something I’m looking forward to. After speaking to the Board about the possibility of coming back, you could feel the enthusiasm and energy from them, and I think they felt that from me as well.
“The Club has enjoyed great success over the past couple of seasons in getting promoted and then solidifying themselves in the Championship. We want to build on that even further now, and be as competitive as possible in this division.”
Here are today’s rumours...
1. Watford could sell play-off winner this summer
Watford are reportedly prepared to sell Philip Zinckernagel this summer, with Nottingham Forest targeting their former loanee. Olympiacos are also interested in the 27-year-old. (Nottingham Forest News)
2. Crystal Palace agree deal for West Brom star
West Brom goalkeeper Sam Johnstone is set to join Crystal Palace on a four-year deal this summer. The England international had previously been linked with Tottenham, however they recently signed Fraser Forster. (The Sun)
3. Swansea City boss reunites with defender
Swansea City have snapped up MK Dons' Harry Darling. Russell Martin signed the defender for his former club from Cambridge United last year. (Yorkshire Live)
4. Celtic target Blackburn Rovers youngster
Celtic are keen on signing Blackburn Rovers' Tyrhys Dolan this summer. The 20-year-old made 36 appearances last season and played all over the pitch for the Championship club. (TalkSPORT)
5. Aston Villa forked out seven-figure sum for Blackpool boss
Aston Villa reportedly splashed out £1.2m to bring Neil Critchley to the Midlands this summer. The former Seasiders boss was tempted by the opportunity to spend more time on the grass coaching. (Alan Nixon)
6. Burnley have three bids rejected for defender
It has been revealed that Burnley have seen three bids turned down for Oxford United defender, Luke McNally. The U's will reportedly allow him to leave for £1.75m this summer - £250k more than the Clarets' latest bid. (Irish Sun)