Reports also revealed that his chances of been appointed the manager of the club was threatened by his affiliation with another lower league side Salford City.
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Pete Wild had been installed as manager on an interim basis following the sacking on Frankie Bunn on December 27, and masterminded a 2-1 victory away at Premier League Fulham in the FA Cup third round. Scholes will bring in the former Latics coach Mick Priest as his assistant with his first match in charge Tuesday evening's League Two encounter with Yeovil.
"Paul has won everything there is to win in football", Oldham owner Abdallah Lemsagam said in a statement.
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The English Football League gave Scholes the go-ahead last week to take charge of Oldham, ruling that there was no conflict of interest. "But it's fantastic to have Scholesy back in the game because he was a fantastic player to play with, a great personality".
Scholes, 44, is the fourth of the six members of the famed Class of 92 crop of Manchester United academy players to try his hand at management.
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A complication was Scholes' involvement in non-league Salford City, where he is a co-owner along with fellow former United stars David Beckham, Nicky Butt, Ryan Giggs, Phil Neville and Gary Neville. Obviously there's been talk of it when I finished my (playing) career.