The Rosanero have announced that the 55-year-old will take the reins at the Renzo Barbera, while confirming the return of Franco Brienza
Rosanero president Maurizio Zamparini had already revealed in May that the 55-year-old would take charge of the team, but now the club have made the move official.
Sannino, who has signed a two-year contract with Palermo, leaves Siena after guiding the Tuscan club to 14th place in Serie A in his first season at the Artemio Franchi.
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He will replace Bortolo Mutti, who has been released by Palermo just six months after succeeding Devis Mangia at the helm of the Sicilian club.
Meanwhile, Palermo have confirmed that 33-year-old striker Franco Brienza will return to the Renzo Barbera as he joins the Rosanero for an undisclosed fee.
Palermo finished in 16th position in Serie A, with 43 points from 38 matches.