The 56-year-old began talks with the Verona outfit following Eugenio Corini's departure from the Stadio Marc'Antonio Bentegodi at the end of the 2012-13 Serie A season.
Sannino has, however, been forced to wait for the Flying Donkeys job while he finalised his departure from Palermo, who were unable to avoid relegation to Serie B during his second spell in Sicily.
A statement published on chievoverona.it read: "Chievo have entrusted the care of the first team to Giuseppe Sannino. The new coach will be presented to the press on Tuesday, July 2 at 1500 (BST)."
The Campanian technician has previously managed Varese and Siena and led the Tuscan club to both the Coppa Italia semi-finals and survival in the top flight in 2012.
He told La Repubblica Sport: "I'm honoured to be here and the management really wanted me. This club lives and breathes football and the values here match my own.
"The length of the contract doesn't change our objective. Chievo need to think only about ensuring their survival. Everybody needs to be aware that we can only do so with a struggle.
"I will ask this team to make sacrifices, to show the will to fight and, most of all, to take nothing for granted."
This season sees Chievo meet fierce city rivals Hellas Verona in Serie A for the first time since 2002 and the importance of the 'Derby della Scala' is not lost on Sannino.
"When you talk about Verona in football then you think of Hellas," he added. "They're a team with a great heritage but if you've been in Verona over the last 10 years then you'll realise Chievo deserve to be in Serie A too.
"It will be a special game and I think the people of Verona should be honoured to have two teams competing in the top flight."