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The League One Owls reached an agreement with the former Stockport boss on Saturday night.
A Wednesday statement read: “Sheffield Wednesday Football Club can confirm that an agreement was reached last night for Dave Challinor to become the club’s new first-team manager.
“The 51-year-old will be in attendance at today’s fixture against Blackpool at Hillsborough.
“The club looks forward to formally introducing Dave to supporters on Monday, when further details of the appointment will be announced.”
Challinor replaces Henrik Pedersen, who was sacked last week after less than 15 months in charge.
Chester-born Challinor made 140 league appearances for Rovers between 1996 until 2002 and played in the 2000 Football League Cup final.
The centre back became a cult hero after breaking the world record for the longest throw in football. This was 152 feet (46.34 metres) in a special challenge set-up at Prenton Park in 1998.