Arnold, 35, joins the Owls from his managerial role with Newark and Sherwood, a side in the United Counties League Premier Division North.
He began his playing career with Mansfield Town and had spells for various clubs including Hyde United, Grimsby Town and Lincoln City.
The former winger is no stranger to the Northern Premier League, and will look to push Cleethorpes further towards the top, as they sit fourth from 14 games this campaign.
On his appointment as manager, Arnold told the club’s official site: “It is a privilege to be asked to take this football club forward and I couldn’t turn this opportunity down.
“The Club has good solid foundations, and I am committed to helping the Club fulfill its ambitions.
"I want to continue to test myself as a young manager. Cleethorpes are a Club with stability and have ambition, and it is also a special part of the world for me.
“I believe management is very much about connections with people.
“That is important for me, and some of my happiest memories were from my time living here for over 2 years.”
His managerial debut for the Owls will take place this coming Saturday when they make the trip to Brighouse in the East Division.
Photo credit Cleethorpes Town
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