Clifford, 42, replaces Lee Fowler who left last week and has since joined Bradford Park Avenue as assistant.
He had four spells at Ilkeston as a player, before going on to play in the Football League with Boston United.
Clifford said: "It's a privilege to have been appointed head coach at Ilkeston.
"I have a good connection with the supporters here having enjoyed a fantastic time at the club as a player, including under the legendary manager Keith Alexander.
"It's a big challenge of course, coming in so close to the start of the season, but if I wasn't comfortable with it I wouldn't have taken it on and we need to go into the campaign full of confidence."
His first game in charge will be the FA Cup extra preliminary round clash against Loughborough University on Saturday.
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