The 42-year-old New Zealander will work full time for the club on a one-year contract with a one-year option which will only be triggered if he leads the Roughyeds to League One for 2010.
"If we don't get promotion I'm out of a job, simple as that and it's crystal clear," he said.
"But I'm happy with that. I am excited and privileged to be joining a club with such a proud history and such a great tradition as Oldham.
"We both want to be operating in NL1 in season 2010 while, further down the track, my aim is to be coaching in Super League and Oldham's intention is to be playing in Super League."
Oldham chairman Bill Quinn said: "This appointment is the most important decision the club has made since it was reformed 11 years ago."
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