The Blue Square Premier club, who were relegated from the Football League last season, has appointed the Germany legend to spearhead the upcoming campaign.
Hamman started his coaching career in the backroom team at MK Dons before working under Sven Goran Eriksson at Leicester City.
Pointing the way: Dietmar Hamman takes over at Stockport
Hamann, who won the Champions League with Liverpool in 2005, has agreed a one-year contract to replace Ray Mathias at Edgeley Park.
He said: 'With the situation as it is - only seven or eight players on the books - I've got a chance to bring in eight or nine players that I want and I think that's a big advantage.
'There's no rights or wrongs and I look forward to the challenge. I'll go to places I've not been before but I'm not afraid of that because that's what it's all about in football - taking up new challenges.
'Where there's a chance there's a risk, but I'll try my best to make the club successful again and bring it back to where it belongs.'
Euro magic: Hamann joins the celebrations after Liverpool lifted the Champions League trophy in Istanbul
Meanwhile, Tony Evans has been appointed as a director of Stockport.
He said: 'While there can be no doubt that Stockport County is in a challenging position, I'm confident that with strong management and the fans' support the club can achieve great things.
'I'm excited about having the opportunity to use my experience to drive the club forward both on and off the pitch.
'I'd like to thank all the directors and shareholders for their support during the negotiations and I look forward to working with them both in the weeks and months ahead.
'I would also like to thank Stockport council's leader Dave Goddard who has expressed great interest in supporting the club in the future.'
Former Liverpool midfielder Hamann set to be new Stockport boss Ex-Liverpool, Newcastle and City star Hamann banned for drink-driving