News reports emerged on Tuesday that the club could part ways with the coach and Eric Tinkler was linked with the job as his successor.
The Chilli Boys have had a poor start in the new season as they lost two of their three PSL matches.
Although the coach was set to be given enough time to work with the Port Elizabeth-based side, Chippa Mpengesi decided to sack the former Orlando Pirates defender.
In a statement released on Wednesday, the Eastern Cape-based side said the former SuperSport United coach has been given a one-year contract.
“Chippa United hereby confirm that it has parted ways with Head Coach Dan Malesela,” said the club in a statement on Facebook.
“The Club would like to thank Coach Dan for his contribution to the club over the past and current season and wish him the best with his future endeavours,” it added.
“The club furthermore wishes to confirm the appointment of Eric Tinkler. No stranger to the Premiership, Coach Tinkler and has had an illustrious career at the helm of top clubs, including Orlando Pirates, Cape Town City, and SuperSport United, achieving several milestones, including guiding both Pirates and SuperSport to Confederations finals and leading the Citizens to a Telkom Knockout Cup title plus third-place finish in the league in the 2016/17 season,” said Chippa on Wednesday.
“The club believes that his proven abilities fit in perfectly its objectives and wish him every success in the Eastern Cape,” announced the Chilli Boys.
“Tinkler has a penned a one-year contract with an option to renew and will start with immediate effect,” concluded the statement.
Meanwhile, the former Bafana Bafana midfielder joins the Chilli Boys after leaving SuperSport United in March 2018 as the club struggled to move away from the relegation zone last season.
Prior to his tenure with the reigning MTN8 Cup holders, he led Cape Town City to Telkom Knockout Cup glory in the 2016/17 PSL season and helped them finish third in the league.
With Chippa sitting at number 15 on the log table with one point, the former Buccaneers boss will be tasked with turning the club's fortunes and could be in charge when they meet Matsatsantsa on August 29 in Tshwane.