With former manager Billy Davies polarising opinion at The City Ground, the ex-captain and caretaker boss is keen to united those associated with the club when he takes up the role
The former Forest captain has agreed a two-year deal in charge of the Championship outfit that will kick in prior to the 2014-15 season.
The 51-year-old succeeds Billy Davies on a long-term basis, with the Scot having polarised opinion among supporters during his two spells at The City Ground, and Pearce is now keen to unite those at the club.
"I want the club to be at one," he said at his unveiling. "In my time at Nottingham Forest, one of our strongest points was our togetherness."
In returning to Forest - where he was also caretaker manager during the 1996-97 season - Pearce is back in club management for the first time since leaving Manchester City in 2007.
He added: "Coming back to this club is a massive honour for me, but I'm aware what I've achieved as a player is now irrelevant.
"My job is to galvanise a team the fans can be proud of. We want to play a good brand of football."
Under the guidance of caretaker manager Gary Brazil, Forest are one place and two points out of the play-off pack, but are winless since mid-February.
Regardless, Pearce is backing the team to end the season with a flourish.
"I think there is enough quality in this squad to get into the play-offs," he said. There's an opportunity for the team."